• This week’s economic reports mostly came in ahead of expectations or roughly in line with them, which further alleviated fears of double-dip recession.
• Retail sales rose solidly in August, with overall sales rising 0.4 percent and our preferred core measure of retail sales climbing 0.6 percent.

Global Review

• Turkish GDP slowed from 11.7 percent year-on-year to 10.3 percent, but was better than expected. The manufacturing, construction and agriculture sectors posted strong gains. Trade remained a drag on GDP as strong domestic demand and demand for intermediate goods resulted in imports outpacing exports.
• While headline inflation remains low, capacity utilization rates continue to trend higher and are quickly approaching pre-crisis levels. This suggests that Turkish interest rates have likely bottomed, though no hikes are currently planned.

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