FX.co ★ Turkey Manufacturing Activity Falls at Softer Pace

The Istanbul Chamber of Industry Türkiye Manufacturing PMI edged up to 48.1 in August 2026 from 47.7 in July, reaching its highest level in three months. This reading indicated a modest easing in the overall deterioration of business conditions. However, the ongoing conflict in the Middle East continued to weigh on the sector, keeping demand subdued amid heightened uncertainty. Both total new orders and new export business fell again, though the rates of decline were slower than in July. Consequently, manufacturers cut back production for the third consecutive month, with the pace of contraction remaining modest. Firms also reduced employment and purchasing activity, both of which declined at solid and faster rates than in the previous month. Inventories of inputs and finished goods continued to fall. Meanwhile, input cost inflation accelerated to a three-month high, reflecting increased fuel and oil costs as well as rising raw material prices. In response, firms raised their selling prices. Additionally, suppliers’ delivery times lengthened.