Surging input costs slow Türkiye's manufacturing activity in January

Türkiye’s Manufacturing Purchasing Managers’ Index (PMI) fell to 48.1 in January from 48.9 in December, following a brief uptick, largely driven by rising input costs, the Istanbul Chamber of Industry reported on Monday.

According to survey results compiled by S&P Global, this represents the 22nd consecutive month the index has remained below 50, indicating a deterioration in the sector’s overall performance and reflecting continued weakness in demand conditions and a moderate decline in output.

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Input costs jump, prices hit 21-month high

Input cost inflation surged sharply in January, making up the fastest pace of increase since April 2024. Respondents cited rising raw material prices, particularly for metals, as a key driver.

These costs were passed on to customers, pushing final product prices to their steepest rise in nearly two years. Selling price inflation remained above its historical average across the board.

"Inflationary pressures intensified, maintaining their recent trend," said S&P Global’s Economics Director Andrew Harker, pointing to strong increases in both input costs and selling prices. He added that firms were hopeful for some easing of these pressures in the coming months.

Interior view of a steel and metal production facility in Türkiye. (Adobe Stock Photo)

Select sectors return to growth in Turkish industry

Harker said the sector entered 2026 "with a similar outlook to the end of last year," as weak demand and challenging conditions led to a moderate slowdown in new orders and output.

While overall manufacturing activity contracted, five of the ten sectors posted output growth, the broadest since May 2023. Chemicals, plastics and rubber led the rebound, with textiles also expanding for the first time in 31 months. Export demand helped lift sectors like apparel and leather, which saw their strongest overseas order growth in 20 months.

Conversely, non-metallic mineral products suffered the sharpest drop in both production and orders.

Employment rose in four sectors, led by food manufacturing, while inventory and purchasing activity declined. With input costs rising, all ten sectors increased selling prices for the first time in three months.

February 02, 2026 12:08 PM GMT+03:00