Turkey Manufacturing Downturn Softest Since 2024

The Istanbul Chamber of Industry Türkiye Manufacturing PMI rose to 49.3 in February 2026 from 48.1 in January, signaling a near stabilization in manufacturing activity and the softest contraction since April 2024. New orders edged down only marginally, marking one of the smallest declines since the current downturn began in mid-2023, amid signs of improving demand. Output fell for the twenty-third consecutive month, though at the slowest pace in over a year. At the same time, employment fell for the fifteenth straight month, but at a softer rate than in January. Purchasing activity was broadly unchanged, while inventories of purchases were reduced at a slower pace. On the price front, inflationary pressures intensified, with input costs rising at the fastest pace in nearly two years, driven by higher raw material prices and minimum wage increases. Output price inflation also accelerated to its strongest level since April 2024.

The Istanbul Chamber of Industry Türkiye Manufacturing PMI edged down to 48.1 in January 2026 from 48.9 in December, remaining below the 50.0 threshold for the twenty-second consecutive month. The reading signaled a mild deterioration in manufacturing conditions, with subdued demand as new orders declined further and export orders weakened more sharply than overall business. In response, manufacturers continued to scale back output, extending the downturn in production to nearly two years. Employment and purchasing activity also decreased, reflecting softer workloads and ongoing caution among firms. On the price front, inflationary pressures heightened, with input costs rising at the fastest pace since April 2024 due to higher raw material prices, while output prices climbed at a near two-year high. An analyst at the Istanbul Chamber of Industry commented that manufacturing entered 2026 much as it ended last year, with demand conditions still weak and production slowing.

The Istanbul Chamber of Industry Türkiye Manufacturing PMI rose to 48.9 in December 2025 from 48.0 in November, marking the softest contraction in a year. New orders and export orders declined at the softest pace since March 2024, reflecting some improvement in customer demand. Output fell for the twenty-first consecutive month, though at the slowest pace in 12 months. Employment and purchasing activity contracted only slightly, with the smallest reductions since March 2025, while inventories of purchases and finished goods fell solidly. Inflationary pressures picked up, with input costs rising sharply amid higher raw material prices and selling prices increasing at the fastest pace in eight months. An analyst at the Istanbul Chamber of Industry commented that the PMI’s rise gives Turkish manufacturing momentum into 2026, with improved demand supporting milder slowdowns in output, orders, and employment.