FX.co ★ Turkey’s Manufacturing Contraction Eases as PMI Edges Up in August

Turkey’s manufacturing sector showed signs of stabilisation in August, as the Istanbul Chamber of Industry’s Manufacturing Purchasing Managers’ Index (PMI) ticked up to 48.10 from 47.70 in July 2026.

Although the August reading remains below the 50.0 threshold that separates expansion from contraction, the improvement suggests that the pace of decline in manufacturing activity has moderated. The latest figure, updated on 1 September 2026, indicates that business conditions in the sector are still under pressure, but no longer deteriorating as sharply as in the previous month.

The slight rebound in the PMI will be closely watched by investors and policymakers as they assess whether Turkey’s manufacturing downturn is bottoming out or merely pausing before further weakness. With the index still below 50, the data signal that a sustained recovery in industrial output has yet to take hold.