Service Production Index Climbs 1.3% YoY in June, ICT Surges 9.4%

Turkey’s service production index rose %1.3 year‑on‑year in June, with a %0.6 monthly increase, while the strongest growth was recorded in the information and communication sector at %9,4.

Rising Star: ICT’s Spotlight

■Information and communication services led the sector with %9,4 growth.

■Financial and retail services followed with %2,1 and %1,8 respectively.

■Tourism and accommodation services saw a modest rise of %0,4.

Index Statistics at a Glance

■Year‑on‑year overall service production index increased by %1,3.

■Monthly index climbed by %0,6.

■The highest annual jump, %9,4, occurred in the information and communication domain.

Market Implications and Investor Outlook

■The growth signals bolster expectations for Turkey’s 2025 growth target.

■TL stability is reinforced, with potential upticks in consumer spending.

■Shares of ICT‑focused firms rose by 1.5‑2 %, mirroring sectoral expansion.

■Short‑term bond prices remained steady as the Central Bank is unlikely to alter its rate policy.

Macro‑Economic Context

■Service sector growth is a positive sign toward meeting the 2025 growth goal.

■Inflationary pressures eased slightly, hinting at rising consumer expenditures.

■For foreign investors, the sector’s expansion presents a compelling diversification opportunity.

Caner Yılmaz: This uptick reflects the accelerating digital transformation in the ICT arena. The key market driver will be the sustainability of this growth and investor interest in the sector. While short‑term signals are positive, inflation and external trade balances remain risk factors to monitor.