Turkey’s manufacturing confidence index rose to 102.8 in August 2026 from a revised 102.2 in July, according to TurkStat data released on Aug. 25. The second consecutive monthly increase kept the index above the neutral 100 threshold, indicating that optimistic manufacturers outnumbered pessimistic ones. Sub-indices for production volume, new orders and employment all improved slightly, while export orders showed only marginal growth. The reading remained below the long-term average of around 110, highlighting the continued pressure from high input costs, tight financial conditions, inflation and fragile global demand. Manufacturing accounts for roughly 20% of Turkey’s GDP and employs millions of workers, making the index a leading gauge of industrial activity, investment and hiring. The improvement may support economic momentum in the second half of 2026, but high financing costs, currency volatility, energy-price uncertainty, geopolitical risks and restrictive monetary policy continue to weigh on the outlook.