Industrial production falls sharply in Türkiye

On a monthly basis, the seasonally and calendar-adjusted index fell by 1%. A breakdown by sector showed that manufacturing production contracted by 2.5% compared with the previous year, while mining and quarrying output increased by 1.7%. Electricity, gas, steam, and air conditioning supply rose by 1.3%. The figures indicate that the weakness in industrial activity was concentrated primarily in the manufacturing sector.

A similar trend emerged in the monthly figures. Manufacturing output declined by 1.6% in August, while mining and quarrying production increased by 4.1% and electricity, gas, steam, and air conditioning supply rose by 3.3%. As a result, gains in energy and mining activities were insufficient to offset the contraction in manufacturing. The Istanbul Chamber of Industry's August Purchasing Managers' Index (PMI) had also highlighted continued weakness in new orders, with manufacturers reducing production for the third consecutive month. The latest industrial production data suggest that downside risks to the industrial sector's contribution to economic growth remain in place for the third quarter.