# Manufacturing sector contractions in Turkey and Indonesia

> Live situation record from CLSTR: https://clstr.news/situations/manufacturing-sector-contractions-in-turkey-and-indonesia
> Updated: 2026-09-16T08:18:26.000Z. Sources: 7. Developments: 2.

In August 2026, manufacturing sectors in Turkey and Indonesia reported contractions. Turkey’s manufacturing PMI rose slightly to 48.1 from 47.7 in July but remained below the 50-point threshold, marking 29 consecutive months of industrial decline. Economist Hakan Kara noted this slowdown is “unprecedented in recent history.” In Indonesia, the manufacturing PMI fell to 49.8 from 50.2, driven by weakening production, rising costs, and workforce reductions, though business confidence reached a seven-month high.

Specific data for the Turkish textile sector showed an accelerating contraction, with the Textile Products PMI falling to 44.1 from 48.0 in July. This decline was attributed to weakening demand, as the new orders index dropped to 40.5. Producer Baran Başboğa stated that the primary challenge is a “lack of order visibility,” which causes manufacturers to become more cautious regarding employment, investment, and raw material procurement.

## Timeline

### 2026-09-16: Turkey textile sector PMI falls to 44.1 amid declining orders

Turkey's textile sector saw a sharp contraction in August 2026, with the PMI dropping to 44.1 due to significant declines in new orders and production, according to Istanbul Chamber of Industry data.

4 sources. https://clstr.news/cluster/turkey-textile-sector-pmi-falls-to-441-amid-declining-orders

### 2026-09-02: Manufacturing PMI declines in Turkey and Indonesia

Manufacturing activity in Turkey and Indonesia both contracted in August 2026, with Turkey marking 29 months of industrial decline and Indonesia seeing a dip in PMI despite rising business confidence.

3 sources. https://clstr.news/cluster/manufacturing-pmi-declines-in-turkey-and-indonesia

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Cite as: Manufacturing sector contractions in Turkey and Indonesia. CLSTR, https://clstr.news/situations/manufacturing-sector-contractions-in-turkey-and-indonesia
