Türkiye's services sector contracts in October

The index, set with 2021 as the base year, revealed mixed trends across various sectors, highlighting the uneven performance of Türkiye’s service industry.

Transportation and storage services saw a notable annual decrease of 4.6%, while accommodation and food services demonstrated growth, increasing by 4.0%. Similarly, real estate services experienced a rise of 5.2%, showcasing strength in the property market. In contrast, information and communication services fell by 3.2%, and professional, scientific, and technical services faced a sharp decline of 9.5%, reflecting challenges in these sectors. Meanwhile, administrative and support services recorded a modest annual growth of 2.8%.

On a monthly basis, the Services Production Index showed a slight improvement, rising by 0.2% in October 2024 compared to the previous month. Transportation and storage services edged up by 0.1%, and accommodation and food services grew by 1.1%, maintaining their upward momentum. Professional, scientific, and technical services increased by 1.8%, and administrative and support services climbed by 1.3%. However, real estate services fell by 2.8%, and information and communication services declined by 2.5%, reflecting ongoing volatility in certain areas.

The contrasting performances within the service sector point to a complex economic landscape. The sharp annual decline of 9.5% in professional, scientific, and technical services raises concerns, while the resilience of accommodation and food services suggests some stability in the hospitality sector.

As the Turkish economy continues to adjust, these variations underscore the importance of monitoring and addressing the specific challenges and opportunities within each service area. (ILKHA)