Türkiye's manufacturing sector faced continued challenges in January, with new orders and production continuing to decline, while inflationary pressures surged, a survey from S&P Global reported on Monday.
The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers' Index (PMI) fell to 48.1 in January from 48.9 in December, remaining below the 50.0 threshold that indicates growth for the twenty-second 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, reflecting broader challenges in the global market, the survey showed.
Manufacturers responded by reducing output, and the slowdown in production was more pronounced than in December, the survey said.
In line with reduced output, firms cut back on employment, purchasing activity, and inventories of inputs and finished goods at the start of the year.
Inflationary pressures intensified, with input costs rising sharply. The pace of inflation accelerated, driven by higher raw material costs, particularly metals. Consequently, output prices surged as firms passed on increased costs to customers, the survey 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."
