Industrial Production Index: February 2026 Results Show Growth
Turkish-industry
The Industrial Production Index for February 2026, released by the Turkish Statistical Institute (TÜİK), reveals a resilient industrial sector despite ongoing economic tightening. According to the data, industrial production increased by 2.2% annually and showed a robust 2.6% monthly recovery, largely driven by a strong performance in the manufacturing sector.
Annual Performance: Manufacturing and Mining Lead the Way
When compared to February 2025, the sub-sectors of the index (base year 2021=100) showed a mixed but generally positive trajectory:
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Manufacturing Industry: The primary engine of growth, increasing by 2.4% annually.
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Mining and Quarrying: Saw the highest sectoral growth at 4.1%.
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Utilities (Energy): The electricity, gas, steam, and air conditioning production and distribution sector lagged behind, recording a 2.2% decrease.
Monthly Performance: A Strong Rebound in Manufacturing
The monthly data (February 2026 vs. January 2026) highlights a significant uptick in industrial activity after a relatively stagnant start to the year:
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Overall Index: Rose by 2.6%.
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Manufacturing: Recorded a sharp monthly increase of 3.3%, suggesting that factories scaled up operations significantly during the month.
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Mining: Remained stable with a slight 0.4% increase.
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Utilities: Continued its downward trend with a 3.6% monthly decrease, likely reflecting seasonal shifts in energy demand or production efficiency measures.
Analysis: Balancing High Rates with Production
This growth comes at a critical time when the “real economy” is under pressure from high interest rates (currently 37%). The 2.2% annual growth indicates that, despite high financing costs, Turkish industry—particularly in manufacturing and mining—is maintaining output.
However, the contraction in the energy sector serves as a cautionary sign, possibly linked to the broader disinflationary cooling in heavy industrial demand. As the second quarter begins, market analysts will be watching to see whether the 3.3% monthly surge in manufacturing can be sustained amid tightening credit conditions.
For the full TÜİK report, click here
