Manufacturing PMI declines in Turkey and Indonesia

Manufacturing sectors in Turkey and Indonesia both reported contractions in August 2026, according to recent Purchasing Managers' Index (PMI) data.

In Turkey, the manufacturing PMI rose slightly to 48.1 from 47.7 in July but remained below the 50-point threshold that separates growth from contraction. This marks the 29th consecutive month of industrial decline. Former Central Bank chief economist Hakan Kara noted that this period of slowdown is unprecedented in recent history, surpassing the duration of the 2008 global financial crisis and the Pastor Brunson crisis. All ten tracked manufacturing sub-sectors in Turkey fell below the 50-point mark, with the chemical, plastic, and rubber sector experiencing the sharpest decline at 43.7.

Indonesia's manufacturing PMI also fell to 49.8 in August, down from 50.2 in July. The decline was driven by weakening production and a reduction in the workforce due to increased competition, weak demand, and rising costs. Despite the contraction in production, business confidence in Indonesia reached a seven-month high, and new orders showed slight signs of expansion for the first time in three months.