Turkey's industrial output declined 8.6 percent on an annual basis in September, according to official data released Monday. The figure shows once again that economic recovery will be slow and gradual. The Central Bank may continue slashing its benchmark interest rate further, analysts say



Turkish industrial output has declined for the past 14 straight months. Bloomberg photo
Industrial production in Turkey declined at a faster pace in September for the first time in seven months, adding weight to Central Bank doubts over the strength of recovery from the deepest recession in decades.

Output dropped an annual 8.6 percent in September from 6.3 percent in August, the first time the fall had accelerated since February, according to figures the Turkish Statistics Institute, or TurkStat, released on its Web site Monday.

Production, which has fallen for 14 consecutive months, was expected to decrease 7.5 percent, according to the estimates of 16 economists polled by Bloomberg. Production fell 0.2 percent from the previous month.

The Central Bank has slashed 10 percentage points from the benchmark interest rate in a year of cuts and said Oct. 27 that there is room for limited additional reductions because there is still no sign of a sustained recovery. The bank will meet to set the overnight borrowing rate Nov. 19.

The data suggest that recovery is proving slow-moving in Turkey, Timothy Ash, an emerging-markets economist at the Royal Bank of Scotland, wrote in an e-mail. There have now been 14 straight months of year-on-year contraction. Month-on-month industrial output fell 0.2 percent, which is doubly disappointing.

A decline of more than 8.2 percent would point to a deeper slump and weaker growth in the third and fourth quarters, Bloomberg quoted Finansbank economist İnan Demir as saying in an e-mailed report before the data were announced. Finansbank does not expect to see a positive result until December, Demir said.

Alarm over manufacturing

In a note to investors, İş Investment economists noted that among the components of the disappointing data, manufacturing output contracted 9.3 percent on an annual basis.

The contractions in mining and gas/electricity are 6.4 percent and 4.1 percent, respectively, a testimony that the weakness has spread, a report by İş Investment said. Falling for the 14th straight month, industrial production has contracted 15.1 percent in the first nine months of the year.

Despite the relative strength of durable goods performance, we see no recovery in intermediate goods and perishable goods, the report noted. Despite the dynamics seen in automobile and furniture production, weakness continues in ready wear, food and refined petroleum. The overall picture supports our prediction that the recovery will be slow and gradual.

Turkish gross domestic product may contract 6.5 percent this year, according to International Monetary Fund forecasts. That would be the deepest decline since World War II.

Exports in September fell 34 percent from a year earlier to $8.5 billion, TurkStat said Oct. 30. The global crisis has slashed demand in Europe for Turkish-made goods such as washing machines and ovens.

TurkStat will announce seasonally adjusted output figures for September output on Nov. 26.

Speaking to the private CNBC-e news channel on Monday, Industry Minister Nihat Ergün said industrial output will post a better performance in October because exports gained on a yearly basis last month. Investors in Turkey should not get obsessed with zigzags in the countrys output data, Ergün said.

İş Investment said that in light of the recent data, the Central Bank might cut the benchmark borrowing rate by 25 basis points, from its current level of 6.75 percent.

Well, my parents have always told me that Turkey is the middle-point of the world and now I see that they were right . Count for once how many threads Landass the old fart has opened about Turkey and compare that amount with the threads he's opened about greece. You'll immediately see that he, like many other desperate gayreeks, is obsessed with Turkey!

what happened "ownage" named topics ?


ETERNAL LEADER of TURAN LANDS
EBEDI BASBUG

I thought Turkish industry was the best in the world? What happened??

"Turkey's industrial output dropping at frightening rate."

excellent news!!

"Turkey's industrial output dropping at frightening rate"

uhhh we are frightened lol

Look it does not matter we will go back to village life and still have self sustained food and water
So long as we have plenty of weapons to beat back the starving gavurs and neighbours i will be happy
Unlike lazy arsed western countries where riot's will break out and underlying barbarism will come in straight away. katrina floods riots anyone? remember nikophorospu ,while our earthquake Izmit were relativly civil despite the horrendous loss of life and destruction.

That is our difference


GREEK ATROCTICIES CRIMES