Industrial output in Bulgaria posted a modest monthly increase in February 2026, but continued to decline sharply on an annual basis, according to preliminary, seasonally adjusted data from the National Statistical Institute.

On a monthly comparison, the industrial production index rose by 0.9% compared to January. This growth was largely driven by developments in manufacturing, which expanded by 3.8%. In contrast, energy production and distribution contracted significantly, falling by 9.4%, while the mining and quarrying sector also registered a decline of 3.6%.

Within manufacturing, several segments recorded notable gains. Output in “other manufacturing” rose by 13.3%, while the leather processing and footwear industry increased by 10.3%. Textile production, excluding clothing, grew by 8.4%, and electrical equipment manufacturing advanced by 8.2%. At the same time, declines were observed in specific areas, including wood processing, which dropped by 12.8%, and tobacco production, down by 4.6%.

Despite the monthly uptick, the broader trend remains negative when viewed year-on-year. Compared to February 2025, the calendar-adjusted industrial production index fell by 8.1%. The steepest declines were recorded in the energy sector, where output plunged by 36.1%, and in mining, which contracted by 21.5%. Manufacturing was the only major segment to show a slight increase over the same period, rising by 0.4%.

A closer look at annual developments in manufacturing reveals mixed dynamics. Strong growth was reported in tobacco production, which surged by 47.3%, as well as in the manufacture of medicinal products, up by 22.6%, and basic metals, which increased by 15.6%. However, other branches saw significant setbacks, including a 32.4% drop in the production of vehicles excluding cars, and a 23.2% decline in leather processing and related goods.