Turkiye manufacturing downturn eases to mildest level in a year in Dec

New orders declined at the slowest pace since March 2024, with some firms reporting better customer demand. Despite this improvement, both total new business and export orders continued to ease during the month. Production was also scaled back again, extending the current sequence of contraction to 21 months, although the pace of moderation was the weakest in a year, S&P Global said in a press release.

Purchasing activity and employment saw softer reductions, with workforce numbers easing only marginally and at the least pronounced rate since March 2025. At the same time, inventories of both inputs and finished goods fell sharply, reflecting cautious stock management.

Inflationary pressures strengthened after easing in November. Input costs rose sharply amid higher raw material prices, prompting manufacturers to increase their own selling prices at the fastest pace in eight months.

“With the Istanbul Chamber of Industry Turkiye PMI Manufacturing Index reaching its highest level for a year in December, the manufacturing sector takes some momentum into 2026, giving hope that we will see growth in the months ahead. A number of survey respondents noted that customer demand improved at the end of 2025, leading to softer slowdowns in new orders, output and employment,” said Andrew Harker, economics director at S&P Global Market Intelligence. “While inflationary pressures rebounded following the recent lows seen in November, rates of increase in input costs and output prices were still comfortably below the highs we have seen at times in recent years and so shouldn't act to restrict demand for now.”

The PMI data showed that Turkish manufacturing output moved closer towards stabilisation in December as the pace of decline eased for the second month running. While some firms continued to cut production due to weaker order inflows, others reported expanding output in response to improved demand conditions.

Employment levels moderated for the thirteenth consecutive month, although the decline was only slight and the weakest since last March. Survey respondents cited a mix of staff resignations and selective hiring as manufacturers adjusted workforce levels amid tentative demand recovery, added the release.

ALCHEMPro News Desk (SG)