Türkiye’s trade and retail sectors showed strong year-on-year growth in July 2025, despite a monthly slowdown, according to data released by the Turkish Statistical Institute (TurkStat) on Thursday.

The trade sales volume index rose by 11.6% in July compared to the same month last year, driven by increases across all major sectors. The volume of wholesale and retail trade and repair of motor vehicles and motorcycles increased by 9.5%, wholesale trade sales volume grew by 11.4%, and retail trade sales volume surged by 13.0% year-on-year.

However, on a monthly basis, the data reflected a sharp decline. Trade sales volume dropped by 6.5% compared with June 2025. Sector-specific data showed that wholesale and retail trade and repair of motor vehicles and motorcycles fell by 0.5%, wholesale trade plunged by 10.0%, and retail trade sales dipped slightly by 0.2% month-on-month.

Economists note that while the annual growth reflects robust consumer demand and resilient retail performance, the monthly downturn suggests short-term challenges, including seasonal effects, tightening credit conditions, and price sensitivities among consumers.

Analysts will be closely watching August and September data for signs of whether the July dip was temporary or part of a broader slowdown in domestic trade activity.

TurkStat’s detailed report also indicated that the retail sales volume index continues to outperform wholesale trade, signaling that consumer spending remains the main driver of growth, even as wholesale volumes face pressure. (ILKHA)