Industrial output in Turkey jumps, export climate at 15-year high

Turkey’s industrial production index jumped year on year in April, while the export climate index reached a 15-year high in May.

Turkey’s seasonal – and calendar – adjusted industrial production index in April rose by 66% on year, while the manufacturing sector index emerged as the driving force behind Turkey’s total industrial production, according to the latest Turkish Statistical Institute (TUIK) data June 11.

When the subsectors of the industry (based on 2015=100) were examined, the manufacturing index increased by 72.3%, mining and quarrying index increased by 25.5% and electricity, gas, steam and air conditioning supply index increased by 26.6% in April, compared with same month last year.

Recording the highest level in the last 15 years, the Turkey Manufacturing Export Climate Index, compiled jointly by IHS Markit and the Istanbul Chamber of Industry, meanwhile rose from 56.0 in April to 58.4 in May. The index has been running above the 50.0 threshold for the fourth month in a row.

Key export destinations of Turkey such as the UK and the US, accounting for 13% of Turkish manufacturing exports, recorded rising economic activity in May and signaled improving demand for Turkish goods.

With the support of the strong rise seen in industrial output in Turkey, steel consumption in the country jumped 111.5% on year to 3 million mt in April, while Turkish mills’ steel exports rose 35.4% on year to 1.6 million mt.

Turkish mills’ crude steel production rose 46.6% on year to 3.3 million mt in April, according to Turkish Producers’ Association (TCUD) data sent to S&P Global Platts.

— Cenk Can