The sector contracted at its fastest pace since June as new orders and output both weakened.
MoneyTurkey Economics Desk | 2 November 2026
Key points
- Türkiye’s manufacturing PMI fell to 47.3 in October from 47.9 in September, the sharpest deterioration since June.
- New orders declined for the 40th straight month and at the fastest pace since July.
Turkish manufacturers reported a sharper contraction in October, with the headline PMI falling to 47.3 from 47.9 in September, according to data from the Istanbul Chamber of Industry and S&P Global. The reading marked the 31st consecutive month below the 50 threshold that separates expansion from contraction. Output declined for a fifth straight month and at the fastest pace in four months, while new orders fell for the 40th consecutive month.
What happened
The Istanbul Chamber of Industry Türkiye Manufacturing PMI, compiled by S&P Global, dropped to 47.3 in October from 47.9 in September. The decline was the sharpest since June and extended the current period of weakening business conditions to 31 consecutive months. Output was cut for a fifth straight month and at the fastest pace in four months.
New orders fell for the 40th consecutive month. The decline in new business was the sharpest since July, with export orders also continuing to soften. Employment eased only modestly and at the least marked pace since June, according to the survey.
What the numbers say
Input costs and output prices both rose, although their inflation rates eased from September. S&P Global said 29% of respondents reported higher input prices, citing oil, raw materials and exchange rate weakness. The rate of input-cost inflation remained sharp and was faster than the average over the year so far.
Manufacturers still expected output to rise over the coming year, but confidence slipped to a three-month low. Andrew Harker, economics director at S&P Global Market Intelligence, said the economic environment facing Turkish manufacturers made it difficult to generate growth as the final quarter began. He noted that the modest employment decline could help limit the extent of future output reductions.
Why it matters
The survey shows that challenging market conditions and inflationary pressures continued to weigh on demand. New orders slowed again in October, extending the sequence which began in July 2023. The rate of moderation was the fastest in three months.
The data indicate that Turkish manufacturers entered the final quarter of the year with weaker momentum. Output and new business both contracted at faster rates, while cost pressures remained elevated despite some easing from September levels.
What to watch
- November PMI reading for signs of further slowdown or stabilisation
- Trend in new export orders amid ongoing external headwinds
- Movement in input-cost inflation and its effect on output prices
- Employment trend as a leading indicator of output changes
For information only. Not investment advice.
Sources
- Hurriyet Daily News: https://www.hurriyetdailynews.com/turkish-manufacturing-pmi-falls-in-october-228912
- Daily Sabah: https://www.dailysabah.com/business/economy/turkish-manufacturing-activity-contracts-in-october-pmi-data-shows/amp
- Economic Times: https://en.vneconomy.vn/vietnams-manufacturing-pmi-ticks-up-to-523-in-october.htm
