ISTANBUL, September 1, 2026 — The Istanbul Chamber of Industry (ISO) Türkiye Manufacturing Purchasing Managers’ Index (PMI) rose to 48.1 in August from 47.7 in July, reaching its highest level in three months, according to the latest survey results.
Despite the improvement, the index remained below the 50.0 threshold, which separates expansion from contraction. The August reading therefore continued to signal a slowdown in operating conditions in Türkiye’s manufacturing sector, although the pace of deterioration eased moderately from the previous month.
Weak Demand Continues to Weigh on Manufacturing
The ongoing war in the Middle East continued to create uncertainty and contributed to weak demand in August, putting pressure on the performance of the manufacturing sector.
Both total new orders and new export orders declined, although the pace of contraction in both indicators was more limited than in July.
Manufacturers consequently reduced production levels for the third consecutive month. The decline in August was moderate and broadly similar to that recorded in July.
Weak workloads also prompted companies to cut both employment and purchasing activity. Declines in both areas were significant and more pronounced than in July.
Companies reported that they preferred to meet orders by using their existing inventories wherever possible.
Input Cost Inflation Accelerates
Input cost inflation reached its highest level in three months, driven by rising fuel and oil costs as well as increases in raw material prices.
Manufacturers responded by raising their selling prices. Although inflation in both input costs and final product prices accelerated, the increase in final product prices remained slower than the average recorded during January-June.
Supply chains were also affected, with supplier delivery times extending due to disruptions linked to the war in the Middle East.
Demand-Side Challenges Persist Across Manufacturing
The ISO Türkiye Sectoral PMI report for August showed that demand-related difficulties continued across much of the Turkish manufacturing sector, despite some signs of improvement in new export orders.
As a result, growth in production remained limited, while the number of sectors increasing employment declined compared with July.
Input cost inflation remained elevated, although some sectors restrained increases in selling prices in an effort to secure new orders.
Overall, the August PMI reading points to continued contraction in Türkiye’s manufacturing sector, but at a slower pace than in July, with weak demand, rising input costs and Middle East-related supply disruptions remaining key challenges.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök