Turkey Manufacturing Sector Contraction Deepens

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The Istanbul Chamber of Industry Türkiye Manufacturing PMI fell to 46.7 in September 2025 from 47.3 in August, marking the 18th consecutive month of contraction. New orders and output declined amid muted demand, with weaker exports leading firms to scale back production. As a result, softer workloads allowed manufacturers to reduce backlogs to the greatest extent in nearly a year. In addition, employment fell for a tenth consecutive month, though the rate of decline eased compared with August, while purchasing and pre-production inventories also moderated as firms relied on existing inputs to sustain output. On the price front, currency weakness drove input costs to a three-month high, prompting the fastest rise in output charges since April, although both input and output inflation remained below long-run averages.

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