Ömer Karadeniz, President of PLASFED, made statements regarding the İSO Manufacturing PMI data:
The July 2025 Turkey Manufacturing PMI and Sectoral PMI data announced by the Istanbul Chamber of Industry clearly highlight the challenging situation in the production sector. The PMI, which has declined for three consecutive months, fell to 45.9, indicating the most significant slowdown since October 2024. The deterioration in business conditions has now reached its 16th month.
The contraction in new orders, which has persisted for 25 consecutive months, and the drop in July being the steepest in the last four months, is a clear indicator of ongoing issues in both domestic and foreign demand. Under these conditions, manufacturers are forced to reduce production, employment, and purchasing activities while trying to deplete their inventories.
Sectoral data also confirms the scenario. Currency-related cost increases are raising sales prices, while insufficient demand is causing these increases to remain limited. This situation creates a dual pressure that negatively affects both profitability and price stability.
The contraction in industrial production is not temporary; it reflects a structural and multifaceted problem. As investment appetite weakens, industrialists are experiencing difficulties accessing financing even just to maintain production. Rising interest rates, collateral requirements, and strict credit policies directly affect production.
Especially in sectors that are dependent on raw materials like plastics, the volatility in exchange rates and commodity prices poses even greater risks. The weakness in domestic demand, combined with a decline in consumer confidence, makes it difficult for manufacturers to sell what they produce. In external markets, stagnation, protectionism, and high logistics costs create pressure on exporters.
“Decisive policies are needed”
To help our industry escape this bottleneck, we need decisive policies that will stimulate domestic demand, support exports, and encourage production. Facilitating access to financing, rekindling investments, and especially supporting high value-added production can no longer be postponed.
Turkey's industrial strength is anchored in the resilience of our businesses, which continue to produce even during crisis periods. However, the sustainability of this resilience relies on strengthening structural supports and establishing closer dialogue with the real sector.
Translated by Artificial Intelligence
