Turkish manufacturers continued to face challenging business conditions as 2026 got under way, according to the Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Manufacturing Index (PMI) for January.

The health of Turkey’s manufacturing sector declined for the 22nd month in a row.

The headline PMI registered 48.1 in January, down slightly from December's reading of 48.9 (only readings above 50.0 indicate an improvement in output).

Andrew Harker, economics director at S&P Global Market Intelligence, 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.

“Also continuing the recent trend, inflationary pressures strengthened in January, with both input costs and output prices increasing sharply. Firms will be hoping to see these pressures abate somewhat in the somewhat in the months ahead to provide an easier path to growth."

The further moderation in new orders on muted demand conditions caused companies to scale back their production, employment and purchasing activity, the data showed.

Rates of inflation endured by manufacturers were the strongest since April 2024.

Survey respondents often noted higher costs for raw materials, with metals mentioned in particular.