02.01.202607:30:50UTC+00Turkey Manufacturing Downturn Softest in a Year

The Istanbul Chamber of Industry's Türkiye Manufacturing PMI increased to 48.9 in December 2025, up from 48.0 in November, indicating the mildest contraction observed over the past year. Both new and export orders witnessed declines at their gentlest rates since March 2024, suggesting a slight enhancement in customer demand. Although production decreased for the twenty-first consecutive month, it did so at the slowest rate observed over the past year. Employment and purchasing activities experienced only minimal contraction, with the least reductions noted since March 2025. However, inventories of both purchases and finished goods continued to see substantial declines. Inflationary pressures have intensified, as input costs surged due to escalating raw material prices, and selling prices increased at their quickest pace in eight months. An analyst from the Istanbul Chamber of Industry remarked that the rise in PMI provides the Turkish manufacturing sector with a degree of momentum heading into 2026, with bolstered demand contributing to less severe slowdowns in production, orders, and employment.