Manufacturing PMI December 2025: The Sector Shows Signs of Recovery

Overview of Istanbul Chamber of Industry's PMI Report

The results of the Istanbul Chamber of Industry (ISO) Turkey Manufacturing PMI (Purchasing Managers' Index) survey for December 2025 have been published, which is considered an important indicator of economic growth. This survey highlights the performance of the manufacturing sector and provides a critical reference point for investors and the business community.

Current Status of PMI Index

In December, the PMI index remained below the threshold value of 50.0, although it rose from last month's level of 48.0 to 48.9, marking a second consecutive increase. This situation indicates that the deterioration in sector activity conditions has been limited and that the lightest contractions of the past 12 months have occurred.

Order and Production Data

The survey results include information that some firms have noted improvements in customer demand. However, the contraction in new orders fell to its lowest level since March 2024, continuing to negatively impact production. Although production declined for the 21st month in December, the rate of contraction was quite moderate.

Employment and Price Conditions

While input and final product stocks have decreased significantly, input costs and final product prices have regained momentum after hitting the lowest pace of the previous year. Manufacturers have raised their sales prices at the highest rate in the last eight months due to the increase in raw material costs.

Sectoral Analysis

The ISO Turkey Sectoral PMI report shows that only three of the ten sectors included in the survey experienced an increase in production. The food products sector has returned to the growth territory, while production increases in electrical and electronic products continue. However, the most severe contraction in production was observed in machinery and metal products.

Comments on the Economic Future

Andrew Harker, the Director of Economic Intelligence at S&P Global Market Intelligence, emphasized that the headline index reaching its highest level in December marks a positive start for the manufacturing sector in 2026. Survey participants indicate that the improvement in customer demand at the end of 2025 has slowed down the contraction in production and employment areas.