Turkish industry contracts for first month in 15, retail sales growth slows
Turkey’s industrial production fell for the first time since April 2020 on a month-on-month basis. Retail sales grew at a slower pace.
Industrial output dipped by 4.2 percent in July compared with June on a seasonal and calendar-adjusted basis, the Turkish Statistical Institute said on Monday.
The drop in production was spread throughout Turkey’s industrial subsectors, aside from mining and energy. The decrease was led by a 22.4 percent decline in output of high-tech goods and a decrease of 11.6 percent in capital goods production.
Turkey’s government is looking to industry and exporters to lead growth in the economy this year. Some economists are predicting a near 10 percent GDP expansion in 2021 after the country reported record annual growth of 21.7 percent in the three months to June. On a quarterly basis, the economy grew by 0.9 percent.
Retail sales increased by 0.7 percent month-on-month in July. The pace of growth slowed from 15 percent in June, the institute said in a separate statement. A decline in purchases of electronic goods, computers and mobile phones pushed the growth lower.
Sales of goods via mail order rose by 4.3 percent and of medical goods and cosmetics by 3.2 percent, the institute said.
On an annual basis, retail sales increased by 12.3 percent after 18.1 percent growth in June.