Turkish industrial production rises above estimates in August

Industrial production in Turkey exceeded estimates in August, driven largely by a sharp increase in durable goods production, according to data from the Turkish Statistical Institute (TÜ?K) released on Oct. 8.

Industrial production - a measure of output in the manufacturing, utilities and mining sectors - increased 2.9 percent in August from the previous month, and 7.2 percent from the same period of the previous year, according to TÜ?K data. 

The increase came after a 1.5 percent drop in industrial production in July, but analysts attributed that fall in part to the holiday season.

"We did not expect such strong data today," economist Bora Tamer Y?lmaz at Ziraat Securities told Anadolu Agency. 

"Especially after German factory orders this week came in lower, we thought our industrial production would remain weak. Our industrial production is closely linked to production in Germany. We believe that domestic demand in the third quarter eased down. For example, automotive sales declined. But, in contrast, export and manufacturing remained strong, and manufacturers are working through their current inventory. This suggests a positive projection for production in the coming quarter," he said, as quoted by Anadolu Agency.

Third quarter figures under scope

Industry Minister Fikri I??k said the figure could enable the government to revise its year-end growth estimates. 

"Unless a serious drop in economic activity is seen in September data, we could achieve growth of around 3 percent in the third quarter despite several uncertainties. Our existing estimate was lower actually. Today's industrial production data will enable us to revise some estimates up," he said during a live interview on broadcaster NTV on Oct....