POLL-Turkish factory activity seen expanding 6.7% in June


reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TRIPpercent3DECI ballot

ISTANBUL, Aug 5 (Reuters)Turkey’s industrial manufacturing is seen expanding 6.7% yearly in June, persevering with a powerful two-year run regardless of rampant inflation and an ailing currency, a Reuters ballot confirmed on Friday.

Output has made a powerful restoration from the preliminary coronavirus wave in April of 2020.

Economists count on the tempo of progress in the index to gradual in coming months. A possible drop in exterior demand or a provide chain disruption on account of Russia’s invasion of Ukraine may additionally hit manufacturing.

The median estimate in the Reuters ballot of six establishments confirmed year-on-year progress of 6.7% in the calendar-adjusted industrial manufacturing index in June.

Forecasts for the index, seen as a preliminary indicator of financial progress, ranged between 5.5% and 9.9%.

Albaraka Turk Economist Lutfullah Bingol stated the expansion in the index may gradual as of July nevertheless a doable enchancment in chip shortages in automotive sector may dampen the slowdown in different sectors throughout the remainder of the yr.

“We expect a slight slowdown in the growth of the industrial production index in July. However, if the chip issue in the automotive sector is resolved, it may balance the calm in other sectors for the rest of the year,” Bingol stated.

“For this reason and because of the very good course in tourism, we still expect year-end growth to be over 4%.”

Turkey’s economic system grew 11% final yr, up sharply from a yr earlier. But a pointy selloff in the lira in December upended firm and family budgets, and despatched inflation hovering through import costs.

The currency disaster and ensuing soar to 80% inflation, in addition to fallout from struggle, are anticipated to hamper progress in 2022.

The Turkish Statistical Institute will announce June industrial manufacturing figures at 0700 GMT on Aug 12.

(Reporting by Ezgi Erkoyun and Ali Kucukgocmen Editing by Ece Toksabay)

((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.internet;))

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.

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