Strong alarms are resonating for the Turkish industrial sector, according to the head of the Chamber.
In a bid to address the ongoing challenges facing Turkey's industrial sector, the Istanbul Chamber of Industry (ISO) is working on a new solution model. The model is being developed in consultation with all solution partners, particularly the political authority, as highlighted by Erdal Bahcivan, Chairman of the Istanbul Chamber of Industry.
The current state of Turkey's manufacturing industry is weak and contracting, according to the Istanbul Chamber of Industry Türkiye Manufacturing PMI data. In July 2025, the PMI dropped to 45.9 from 46.7 in June, marking the sixteenth consecutive month of contraction and the sharpest decline since October 2024. This contraction reflects ongoing weakness in both domestic and external demand, with new orders falling for the 25th straight month and export orders also softening.
As a result, manufacturers have reduced output at the fastest pace in 10 months and cut staffing levels for an eighth month in a row. Purchasing activity has been scaled back, inventories have been drawn down, and although input costs remain high due to currency weakness, inflation has slowed somewhat this year. Output prices only rose modestly, with some firms lowering charges to support sales.
Despite this downturn in manufacturing, Turkey’s overall industrial production showed growth of 4.9% year-on-year in May 2025, marking the strongest growth in five months. However, this general industrial production growth contrasts sharply with the deteriorating conditions in manufacturing specifically, highlighting sectoral divergence.
Sectoral PMI data showed that all 10 monitored sectors contracted in July, with conditions particularly severe in traditional labor-intensive sectors. The ISO Manufacturing PMI data has been below the threshold value of 50 for a long time, indicating unbearable conditions in Turkey's industrial sector.
In his statements, Bahcivan emphasized that the problems in Turkey's production life cannot be solved with memorized, habitual requests and demands. He stressed that everyone must now accept that the problems in Turkey's production life cannot be ignored. Bahcivan called for industrialists' voices to be heard and for urgent action to be taken for solutions.
The new solution model being developed by ISO aims to provide permanent, sustainable solutions to the problems in Turkey's production life. It is being created with a new generation understanding and perspective. The details of the new solution model will be announced to the public as soon as possible.
In other news, Turkish President Recep Tayyip Erdogan hosted Italian PM Meloni and Libya's Dbeibeh in Istanbul for a trilateral summit on migration and Gaza. The Kizilelma unmanned combat aircraft entered serial production, with deliveries expected in 2026. Heung-Min Son has left Tottenham after 10 years, with Fenerbahce being a top suitor for the football star. A 2,050-year-old council building was unearthed in Laodicea, Turkey.
Bahcivan stated that no one can remain indifferent to the serious nature of the industrial situation in Turkey. He noted that the industrial situation in Turkey has exceeded the limits of paying the price for the fight against inflation. The latest manufacturing PMI data released by ISO showed continued contraction for Turkish industry, with the difficult period for the industrial sector extending to the 16th month. The Istanbul Chamber of Industry Chairman, Erdal Bahcivan, warned that the industrial situation in Turkey is very serious.
- The ongoing contraction in Turkey's manufacturing industry, as indicated by the Istanbul Chamber of Industry Türkiye Manufacturing PMI data, has been affecting Turkish businesses, with manufacturers reducing output and cutting staffing levels.
- Despite the overall industrial production growth in Turkey, the manufacturing sector, as highlighted by the ISO Manufacturing PMI data, has been contracting for 16 consecutive months, with all 10 monitored sectors showing decline.
- Erdal Bahcivan, the Chairman of the Istanbul Chamber of Industry, stressed that the problems in Turkey's production life cannot be ignored and urged for industrialists' voices to be heard, as the current state of the industrial sector has exceeded the limits of paying the price for the fight against inflation.
