UPDATE - Turkish industrial output rises in November

UPDATES WITH COMMENTS FROM MINISTERS

By Tuba Sahin and Mehtap Yilmaz

ANKARA (AA) - Turkey's calendar-adjusted industrial production gained 7 percent in November 2017 compared with the same month in 2016, the Turkish Statistical Institute (TurkStat) announced on Monday.

Industrial output is deemed a vital indicator for the economy as it is seen as a preliminary gauge for gross domestic product (GDP) growth.

Among three main sub-indexes, the manufacturing index rose the most with 7.1 percent during the same period.

In November, annual increase in the electricity, gas, steam and air conditioning supply index was 6.7 percent while the mining and quarrying index was up 5.9 percent.

The term "calendar-adjusted" is used to refer to data without calendar and holiday-originated effects.

The seasonal and calendar-adjusted production level was also up compared with the same figure for October 2017.

"Industrial production increased by 0.3 percent compared with the previous month," TurkStat said.

On a monthly basis, when the sub-sectors of the seasonally and calendar-adjusted industrial sector were examined, the mining and quarrying index rose 3.2 percent in November 2017 while the manufacturing index remained unchanged.

- Strong growth to continue

"Electricity, gas, steam and air conditioning supply index increased by 0.8 percent in November 2017, compared with the previous month," it added.

According to a survey conducted by Anadolu Agency's Finance Desk on Friday, a group of 15 economists estimated the calendar-adjusted industrial production index to increase by 5.9 percent, year-on-year.

About the rise in industrial production, Science, Industry and Technology Minister Faruk Ozlu said: "This figure shows that Turkey's growth will continue to be strong in the fourth quarter of 2017 and that growth will be led by the industrial sector."

Turkish businesspeople, who closely followed developments in domestic and foreign markets, revealed successful results, Ozlu said in a written statement.

"If we look at the fact that 94 percent of our merchandise exports were made through our industrial products, the success of our industry will be clearer."

Turkey can produce competitive and value-added goods through rising quality and it is possible by investing more in research and development (R&D), and design, he said.

He highlighted that the number of Turkey's research and development (R&D), and design centers reached over 900; this number would climb to over 1,000, he added.

R&D and design centers are supported by tax cuts and incentives by the ministry, according to the ministry's official website.

Industrial production indicates that Turkey's growth in the last quarter of 2017 will be higher than expected, Development Minister Lutfi Elvan said in his statement.

"Despite all the negative-perception operations, Turkey's economy continues to be strong and decisive," Elvan said.