Turkish industrial sector economic trends

The Turkish industrial sector is experiencing significant economic strain and divergent performance trends. In early August, the Istanbul Chamber of Industry reported that the July Manufacturing PMI fell to 47.7, signaling a contraction. Industry leaders warned of structural financing problems where failing credit mechanisms and extended payment terms from large buyers are placing heavy pressure on small and medium-sized enterprises.

By late August, specific industrial reports highlighted a split between production declines and continued foreign investment. Dyo Boya Fabrikaları Sanayi ve Ticaret A. Ş. reported a 22 percent decrease in factory production for the first half of 2026, though it maintained revenue through price increases and utilized debt issuance to manage cash needs. Conversely, Saint-Gobain has continued to expand its presence in Turkey, with the group operating 22 facilities and planning three new factory investments, viewing the country as a strategic hub for regional exports.