Strong alarms reverberating within the Turkish industrial sector, according to the Head of the Chamber
The Turkish industrial sector is experiencing a continued decline, as indicated by the latest ISO Türkiye Manufacturing PMI data for July 2025. The PMI dropped to 45.9 in July, down from 46.7 in June, marking the sixteenth consecutive month of contraction and the sharpest deterioration since October 2024.
Erdal Bahcivan, Chairman of the Istanbul Chamber of Industry (ISO), has warned about the serious situation for Turkish industry following the release of the data. Bahcivan reiterated that the problems in the production life cannot be solved with memorized, habitual requests and demands, and called for industrialists' voices to be heard and for urgent action to be taken for solutions.
Key details from the data include:
- New orders fell for the 25th consecutive month, reflecting ongoing weak domestic and external demand. Export orders also softened, contributing to the downturn.
- Manufacturers scaled back production at the fastest pace in 10 months. Employment and purchasing activities were reduced further, with staffing levels down for the eighth straight month.
- Firms cut purchasing and were drawing down inventories, with input stocks dropping at the steepest rate since October 2024. Finished goods inventories declined after a slight increase in June.
- Delivery times shortened due to reduced input demand. Input costs remained high due to currency weakness, but inflation slowed to the weakest pace in the current year.
- Output prices increased modestly, with some firms lowering charges to support sales.
The new solution model, being developed by the ISO, is intended to find permanent, sustainable solutions. It is being created in consultation and dialogue with all solution partners, especially the political authority, and with a new generation understanding and perspective. The new solution model is different from previous attempts at finding solutions, and is aimed at addressing the challenges facing the Turkish industrial sector.
Bahcivan emphasized the need for a new solution model to address the challenges facing the sector, stating that no one can remain indifferent to the serious situation. Bahcivan noted that all 10 monitored sectors contracted in July following June, and that the situation is very serious for manufacturers in Turkey.
Conditions were particularly severe in traditional labor-intensive sectors, according to the sectoral PMI data. The ISO is working on a sustainable solution model to address these challenges and has reiterated that the industrial sector has exceeded the limits of paying the price. The new solution model will be announced to the public as soon as possible.
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- Despite the ongoing contraction in the Turkish industrial sector, as indicated by the ISO Türkiye Manufacturing PMI data for July 2025, Erdal Bahcivan, the Chairman of the Istanbul Chamber of Industry, has emphasized the need for a new solution model to address the sector's challenges.
- The new solution model, being developed by the ISO, is different from previous attempts and is intended to find permanent, sustainable solutions for the Turkish industrial sector, considering the severe conditions particularly in traditional labor-intensive sectors.
- Financial issues are also a concern for the Turkish industry, as manufacturers have been cutting purchases and drawing down inventories, according to the data, indicating a possible struggle within the business sector.
