Manufacturing capacity use and confidence both weakened in July, as softer orders and lower fixed investment offset firmer output, export orders and hiring expectations.
Turkey’s manufacturing sector showed softer momentum in July 2026, with capacity utilization falling to 73.9% from June’s one-year high of 74.5% and the manufacturing confidence index declining to 102.2 from 103.5, both the lowest readings since April. The capacity-use decline was led by investment goods, which dropped to 71.2% from 73.4%, signaling weaker activity in capital-intensive industries. Confidence was dragged down by weaker order conditions and lower fixed investment expenditure, including a fall in total orders over the past three months to 99.9 from 106.6, current total orders to 84.5 from 88.4, and fixed investment expenditure to 104.7 from 112.4. Despite the softer tone, output volumes, export orders and expected employment improved, suggesting manufacturers still saw support from production and external demand.