FX.co ★ Turkey Manufacturing Sector Contraction Deepens

In September 2025, the Istanbul Chamber of Industry reported a decrease in Türkiye's Manufacturing PMI to 46.7, down from 47.3 in August, marking a continued contraction over 18 months. The decline in new orders and production was due to subdued demand, with weakened exports prompting companies to cut back on output. Consequently, reduced workloads enabled manufacturers to diminish backlogs to the greatest degree in almost a year. Employment levels dropped for the tenth straight month, although the rate of this decline was less severe than in August. Additionally, purchasing and pre-production inventories saw a reduction as companies leveraged existing resources to maintain production levels. On the pricing front, currency devaluation led to a three-month peak in input costs, resulting in the quickest increase in output charges since April. Nevertheless, both input and output inflation remained below their long-term averages.