Turkey’s industrial output expanded for the second-straight month in October, the Turkish Statistical Institute said on Friday.
Production increased by an annual 3.8 percent from October last year, building on September’s 3.4 percent expansion. Output fell by 0.9 percent on a month-on-month basis compared with September on a seasonally adjusted basis.
Turkey’s government has implemented tax cuts and slashed interest rates on loans from state-run banks to help pull the economy out of a deep downturn sparked by a currency crisis in August last year.
Production of non-durable consumer goods climbed by an annual 4.9 percent, the institute said. Output of energy increased 8.4 percent and intermediate goods production gained 4.2 percent. Manufacturing of durable consumer goods fell by 5.1 percent.
Turkish firms have curbed price increases over the past year after consumer demand for goods slumped, helping to increase their order books. Investment remains low, the central bank said on Thursday, when cutting interest rates by 200 basis points to 12 percent, bringing rate reductions since July to 12 percentage points.
Economic output in Turkey shrunk by an annual 1.5 percent in the second quarter, the third-straight decrease. Turkish Treasury and Finance Minister Berat Albayrak says he expects a recovery in activity in the final months of the year, predicting marginally positive economic growth for 2019 as a whole.