The Istanbul Chamber of Industry Turkiye Manufacturing PMI ticked up to 48.1 in August 2026 from 47.7 in July, reaching its highest level in three months. The reading signalled a modest easing in the deterioration of business conditions, although the Middle East conflict continued to weigh on the sector, keeping demand muted amid uncertainty. Both total new orders and new export business declined, albeit at slower rates than in July. In turn, manufacturers scaled back production the third consecutive month, although the pace of contraction was modest. Firms also reduced employment and purchasing activity, with both falling at solid rates that were sharper than in July. Stocks of both purchases and finished goods also dropped further. Input cost inflation accelerated to a three-month high, driven by higher fuel and oil costs as well as rising raw material prices. This prompted firms to raise their selling prices. Moreover, suppliers' delivery times lengthened.