Türkiye's industrial output registered a third consecutive growth on an annual basis in January, while it contracted compared to the previous month, the country's statistical authority said on Monday.
The industrial production index increased by 1.2% year-over-year in January, according to the Turkish Statistical Institute (TurkStat).
It had jumped by 1.7% in November and 7% in December. That followed five months of consecutive contractions amid a strict monetary tightening drive as authorities sought to ease stubborn inflation.
The number of sectors making a positive contribution to industrial production on an annual basis has increased and the moderate recovery in activity has spread to the whole, Treasury and Finance Minister Mehmet Şimşek said.
Ten sub-items posted an increase, while three sub-indexes saw falls in January on a yearly basis, according to the TurkStat.
The energy index increased by 6.3%, the manufacturing index grew by 1.2% and the electricity, gas, steam and air conditioning supply index rose by 5%.
Meanwhile, the mining and quarrying index fell 0.7%, the non-durable consumer goods index declined 1.4% and the medium-high technology index decreased 3.8% annually.
The Turkish manufacturing sector is yet to fully emerge from significant hurdles, with inflationary pressures and subdued demand having weighed on business conditions.
On a monthly basis, industrial production dropped by 2.3%, the statistical authority said.
The high-technology index declined by 30.7%, the capital goods index fell by 13.1% and the manufacturing index dropped by 3% in January.
On the other hand, the mining and quarrying index saw a monthly rise of 7.5%, the durable consumer goods index 2.9% and the energy index 1.3%.
"Following the strong growth in the last two months of 2024, industrial production contracted in January due to the correction in sectors with high monthly volatility, but continued its annual increase," Şimşek wrote on social media platform X.
"While the number of sectors contributing positively to industrial production on an annual basis increased, we see that the moderate recovery in activity is spreading across the whole."
Despite the weight of high interest rates, Türkiye's economic growth remained fairly steady last year largely due to strong demand in some areas and some production trends.
Its gross domestic product (GDP) grew 3% year-over-year in the fourth quarter of 2024, bringing full-year growth to 3.2%, according to the latest data that exceeded forecasts.
The government, which had initially projected 3.5% growth for 2024, had trimmed its expectations to reflect ongoing adjustments in domestic demand and efforts to slow down annual inflation, which exceeded 75% in May and is now under 40%.
Fourth-quarter GDP rose 1.7% from the previous quarter on a seasonally and calendar-adjusted basis. The economy suffered a technical recession last year after successive drops in growth in the second and third quarters.
The central bank raised its benchmark rate by 4,150 basis points to cool inflation, bringing the rate to 50% in March 2024. The shift to orthodox policy, after years of low rates aimed at fostering growth, weighed on domestic demand.
The rate is now 42.5% after cuts of 250 basis points in December, January and last week. It is expected to fall to about 30% by year-end.
