Turkish manufacturers continued to endure a challenging market environment in August, but there were some signs of pressures easing, according to the survey data collected for the latest Istanbul Chamber of Industry Turkiye Manufacturing Purchasing Managers’ Index, published on September 1.

The headline PMI for August picked up to 47.3 from 45.9 in July (anything below 50.0 indicates a deterioration in manufacturing performance).

Andrew Harker, economics director at S&P Global Market Intelligence, said: "Business conditions remained challenging for Turkish manufacturers in August, and employment was scaled back markedly as a result.

“There were, however, some signs of positivity from the latest PMI survey which showed the respective slowdowns in output and new orders losing steam. If these trends continue in the months ahead then the sector could be looking brighter as we head towards the end of the year."

The survey showed the rate of input cost inflation in Turkish manufacturing quickened slightly in August, but output prices rose at the slowest pace in the year-to-date.

Overall, there was a solid moderation in business conditions in the sector, but one that was the least pronounced since April, S&P said.

Manufacturing production in Turkey has now softened on a monthly basis in each month since April 2024, it added.

PMI survey respondents mainly linked higher input prices to currency weakness.

Said S&P: “The impact of a depreciation of the lira on raw material costs meant that manufacturers also increased their selling prices during August.

“Here though, the pace of inflation was only modest and slowed to the weakest in 2025 so far.”