The Turkish manufacturing sector continued to face challenging business conditions at the start of the new year as manufacturing activity contracted in January, a closely watched survey showed on Monday.
The Manufacturing Purchasing Managers' Index (PMI) compiled by the Istanbul Chamber of Industry (ISO) and S&P Global fell to 48.1 in January from 48.9 in December, remaining below the 50.0 threshold that indicates growth for the 22nd consecutive month.
Muted demand conditions were evident as new orders eased further, albeit at a modest pace, the panel said. New export orders slowed more significantly than total new business, the survey said.
"Manufacturers signalled muted demand conditions in January, thereby feeding through to a further easing of new orders."
Manufacturers responded by scaling back output, and the slowdown in production was more pronounced than in December, the survey said.
In line with reduced output, firms also lowered employment, purchasing activity, and inventories of inputs and finished goods at the start of the year, it added.
Input costs increased, with the pace of inflation quickening and respondents often noted higher costs for raw materials, with metals mentioned in particular, S&P said.
"The Turkish manufacturing sector began 2026 in a similar position to that which it ended 2025, seeing modest slowdowns in new orders and production as business conditions remained challenging," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
"Firms will be hoping to see these pressures abate somewhat in the months ahead to provide an easier path to growth," he added.
