FX.co ★ Turkey Manufacturing Downturn Deepens in January

The Istanbul Chamber of Industry reported that the Türkiye Manufacturing PMI slipped to 48.1 in January 2026, down from 48.9 in December. This marks the twenty-second consecutive month that the PMI has remained below the critical 50.0 mark, indicating a mild decline in manufacturing conditions. Demand remained tepid as new orders continued to fall, with export orders experiencing a sharper decline than overall business activity. Manufacturers responded by further reducing output, extending the production downturn that has persisted for almost two years. Both employment and purchasing activity decreased, highlighting reduced workloads and sustained caution among companies. On the pricing front, inflationary pressures intensified, with input costs rising at the fastest rate since April 2024, driven by increased raw material prices. Consequently, output prices also surged, reaching nearly a two-year peak. An analyst from the Istanbul Chamber of Industry noted that the manufacturing sector commenced 2026 similarly to how it ended the previous year, with weak demand conditions and a slowdown in production.