Industrial production rose sharply in October, driven largely by healthy increases in the manufacturing, energy and climatization sectors, according to a report from the Turkish Statistical Institute (TurkStat) published on Tuesday. Industrial production – a measure of output in the manufacturing, utilities and mining sectors – rose 4.6 percent in October from the same month in the previous year, and rose 0.1 percent from September to October, the report said.Industrial production had risen 2.8 percent in September year-on-year. The increase in October was driven by a jump in capital goods production, which advanced 11 percent year-on-year. "German factory orders rose 1.8 percent in October, and many Turkish exporters produce intermediary goods for German manufacturing," said Bora Tamer Yılmaz, an economist with Ziraat Securities in Istanbul. "This helps drive up production in Turkey."The Markit Manufacturing Purchasing Managers' Index (PMI) rose to 50.9 in November from 49.5 in the previous month. Any reading above 50 indicates expansion, while a score below 50 suggests contraction.In a statement on Dec. 1, Markit said domestic demand is also on the rise in Turkey, meaning orders are up for local producers as well. There was also good performance in the manufacturing sector, up 5 percent, and a 4.1 percent advance in the electricity, gas, steam and air conditioning supply sectors, TurkStat said. Of all sub-sectors, only the mining and quarrying sectors contributed negatively to the reading, slipping 0.5 percent, according to the report. Gross domestic product (GDP) growth is projected to increase from 3 percent in 2015 to above 4 percent in 2017, as political uncertainties are expected to fade, employment continues to rise and the exchange rate depreciation and the gradual strengthening of global markets support export growth, the Organisation for Economic Co-operation and Development (OECD) said in a statement on Nov. 1.