Turkey economic indicators show mixed trends in October

Economic data from October 2026 reveals a complex landscape for the Turkish economy. The Real Sector Confidence Index saw a decline, with the seasonally adjusted index falling to 101.1. While production and domestic market orders showed signs of weakening, expectations for employment and investment expenditures strengthened.

In the manufacturing sector, the capacity utilization rate rose slightly to 74.3% on a seasonally adjusted basis. This increase was driven by consumer goods, particularly durable goods, which saw a 2.1 percentage point rise. However, capacity utilization for intermediate goods experienced a slight decrease.

Consumer confidence experienced a sharp decline, dropping 7.7% to a level of 84.8. This downturn was reflected across all sub-indicators, including household financial situation expectations and general economic outlooks.

In the housing market, September data showed a rise in first-hand home sales, reaching the highest monthly performance of the year. However, real housing prices have continued to decline when adjusted for inflation, despite nominal increases in TL terms.