ICI Released Türkiye Manufacturing PMI July 2026 and Türkiye Sector PMI Report

• 03.08.2026
• News

The Istanbul Chamber of Industry Türkiye Manufacturing PMI rose to 47.7 in July from 47.1 in June, still remaining below the 50.0 threshold, and signaling that the marked slowdown in the manufacturing sector continued. Thus, the uninterrupted trend of deteriorating business conditions reached its 28th consecutive month. New orders fell markedly again, though the pace of decline eased slightly from June. Firms linked softer demand to subdued market conditions and price pressures, while the war in the Middle East also contributed to the weakening of international demand as of the start of the third quarter. 

According to Istanbul Chamber of Industry Türkiye Sector PMI July report, the number of sectors increasing their output rose to three. The strongest growth was recorded in the clothing and leather goods sector, reaching its highest level in more than four years. Electronic & electrical equipment and non-metallic mineral products sectors returned to growth zone. The sharpest slowdown in output was recorded in the food products. The three sectors that recorded output growth in July also showed growth in new orders. Only four out of ten sectors recorded growth in new export orders. The number of sectors increasing their staffing numbers rose to five in July, reaching its highest level since February.

Istanbul Chamber of Industry (ICI) released the July 2026 results of Türkiye Manufacturing PMI (Purchasing Managers’ Index) survey, which is recognized as the fastest and reliable indicator of the manufacturing industry’s performance in the economic growth. The headline PMI, where any figure greater than the 50.0 no-change mark indicates overall improvement of the sector, rose slightly to 47.7 in July from 47.1 in June, but remained below the 50.0 threshold, signaling that the marked slowdown in the manufacturing sector continued. Thus, the uninterrupted trend of deteriorating business conditions reached its 28th consecutive month. New orders fell markedly again, though the pace of decline eased slightly from June. Firms linked softer demand to subdued market conditions and price pressures, while the war in the Middle East also contributed to the weakening of international demand as of the start of the third quarter. 

The stagnation in market conditions led manufacturers to reduce output for the second consecutive month, albeit to a limited extent. Staffing numbers also fell, with some firms citing workers resigning from their positions. Purchasing activity and inventories were reduced in response to muted demand. As input demand slowed, pressure on supply chains eased somewhat, and suppliers’ lead times increased at the slowest rate in the past nine months. However, firms reported delays in maritime transport. Input prices continued to rise rapidly in July. Firms reported increases in oil and raw material costs, driven by the war in the Middle East as stated by many participants. Meanwhile, input cost inflation fell for the third consecutive month, reaching its lowest rate since November 2025. Similarly, finished goods price inflation also reached its lowest rate since the beginning of 2026. 

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing PMI survey data, Andrew Harker, Economics Director at S&P Global Market Intelligence, said:

The second half of 2026 began in much the same way as the first half ended, with Turkish manufacturers struggling to generate growth amid a muted demand environment, exacerbated by the war in the Middle East. The slowdown in manufacturing output remained more moderate—at least compared to June—pointed to a more stable picture. The continued decline in input cost inflation was also a positive development. This situation gave companies some leeway to limit increases in sales prices in order to stimulate demand.

Output increases in three out of 10 sectors according to ICI Türkiye Sector PMI

According to the Istanbul Chamber of Industry Türkiye Sector PMI July report, among the 10 sectors monitored under the scope of the survey, the number of those expanding their output increased to three in July from two in June. The strongest growth was recorded in the clothing and leather goods sector, reaching its highest level in more than four years. Electronic & electrical equipment and non-metallic mineral products sectors returned to growth zone. Food products output eases to largest extent of all monitored sectors. The three sectors that recorded output growth in July also showed growth in new orders. Once again, the clothing and leather goods sector led the way in this area. The most significant decline in new order volume, however, occurred in the base metal industry. Growth in new export orders spread to a slightly broader range, with increases recorded in four out of 10 sectors. The number of sectors increasing their staffing numbers rose to five in July, reaching its highest level since February. The strongest increases in employment were seen in the electrical and electronic equipment and land and sea vehicles sectors. Inflationary pressures generally eased in July. Input cost inflation slowed in all sectors except for wood and paper products. The most moderate increase was recorded in machinery and metal products. In this sector, cost inflation reached its lowest level since the series began in January 2016. Similarly, finished goods price inflation also slowed in most sectors. The most moderate price increases were observed in the food products, chemical, plastic, and rubber products, and textile sectors. The sharpest price increase, however, occurred in the land and sea vehicles sector, where finished goods price inflation reached its highest level since August 2024. In the land and sea vehicles sector, suppliers’ lead times shortened significantly, leading firms to increase their purchasing activities for the first time since the beginning of 2026. Other sectors that increased their input purchases in July were electrical and electronic equipment, as well as clothing and leather goods.

You can find attached the Istanbul Chamber of Industry Türkiye Manufacturing PMI and Sector PMI July 2026 reports.