FX.co ★ Turkey’s Manufacturing Contraction Eases as Istanbul PMI Rises to 47.7 in July

Turkey’s manufacturing sector showed tentative signs of stabilization in July 2026, as the Istanbul Chamber of Industry Manufacturing Purchasing Managers’ Index (PMI) inched up to 47.70 from 47.10 in June. While the index remained below the 50-point threshold that separates expansion from contraction, the latest reading points to a slower pace of decline in industrial activity.

The improvement, captured in data updated on 3 August 2026, suggests that pressures on Turkey’s factory sector may be easing marginally after recent weakness. The rise in the PMI indicates that some components of manufacturing—such as output, new orders or employment—may have contracted less sharply than in the previous month, although the overall sector is yet to return to growth.

The July reading will be closely watched by investors and policymakers as a signal of whether Turkey’s manufacturing downturn is bottoming out or merely pausing. With the PMI still firmly in contraction territory, the data underline that confidence and demand in the industrial economy remain fragile despite the modest month-on-month improvement.