Turkey Business Morale Improves in August

Turkey’s manufacturing confidence index rose to 102.8 in August 2026 from a three-month low of 102.2 in the previous month, as sentiment among manufacturers improved slightly. Confidence was supported by a rebound in total orders over the past three months (104.4 vs 99.9 in July), higher fixed investment expenditure (105.5 vs 104.7), and a modest increase in current total orders (84.8 vs 84.5). Output volumes also strengthened to 121.1 from 119.3, while finished goods inventories rose to 98.1 from 97.0. Export orders increased to 118.3 from 116.6, pointing to firmer external demand. However, the improvement was partly limited by a weaker overall business outlook, which fell to 86.7 from 90.2, while expected employment over the next three months declined to 103.3 from 105.2.

Turkey’s manufacturing confidence index slipped to 102.2 in July 2026 from 103.5 in the previous month, marking its lowest level since April as sentiment among manufacturers weakened. Confidence deteriorated amid a sharp decline in total orders over the past three months (99.9 vs. 106.6 in June), alongside weaker fixed investment expenditure (104.7 vs. 112.4), lower current total orders (84.5 vs. 88.4), and a slightly softer overall business outlook (90.2 vs. 90.9). However, the decline was partly offset by stronger readings for output volumes (119.3 vs. 117.6), finished goods inventories (97.0 vs. 95.8), expected employment over the next three months (105.2 vs. 103.9), and export orders (116.6 vs. 112.5), indicating manufacturers remained relatively optimistic about production and external demand despite weaker domestic order conditions.

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.