Turkey Manufacturing Confidence Hits 4-Month High

Turkey’s manufacturing confidence index rose to 103.50 in June 2026 from 103.30 in the previous month, marking the highest reading since February. The improvement was driven by stronger expectations for production and investment, with output over the next three months rising to 117.6 from 114.3 and fixed investment expenditure increasing to 112.4 from 109.8. Firms also reported a slight improvement in demand conditions, as total orders over the past three months edged up to 106.6 from 105.5, while expectations for total orders in the coming three months rose to 106.6 from 105.4. Current orders improved modestly to 88.4 from 87.5, although export order expectations softened to 112.5 from 116.3. Employment expectations eased slightly to 103.9 from 105.4, suggesting a more cautious outlook on hiring. Meanwhile, inventories of finished goods declined to 95.8 from 97.4, while sentiment regarding the general business situation improved marginally to 90.9 from 90.4.

Turkey’s manufacturing confidence index rose to 103.3 in May 2026 from a seven-month low of 100.6 in the previous month. It marked the highest reading since February, driven largely by stronger expectations for output over the next three months, which edged up to 114.3 from 114.0, while export order expectations jumped to 116.3 from 112.0. Expectations for employment over the same period also strengthened to 105.4 from 103.7. Moreover, assessments of total current orders improved to 87.5 from 86.5, although assessments of finished goods inventories eased slightly to 97.4 from 97.5. Elsewhere, expectations for fixed investment expenditure increased to 109.8 from 109.3, while perceptions of the general business climate surged to 90.4 from 79.9, pointing to a broader improvement in industrial sentiment.

Turkey’s manufacturing industry confidence index fell to 100.6 in April 2026, the lowest level since September 2025 and down from 101 in the previous month. The decline was driven by softer expectations across key forward-looking components, particularly output over the next three months, which eased to 114 from 117 in March. Export order expectations also weakened (112 vs114.3), while anticipated total orders edged slightly higher (101.6 vs101.2), suggesting only marginal improvement in demand prospects. Employment expectations showed a modest uptick (103.7 vs 102.8), indicating some resilience in hiring plans. Firms, however, turned more optimistic on investment, with fixed investment expenditure expectations rising to 109.3 from 105. Current conditions improved slightly, as total orders increased (86.5 vs 84.3), while stocks of finished goods dipped (97.5 vs 98.4). Meanwhile, sentiment on the general business situation deteriorated notably to 79.9 from 84.8.