Economy
Turkish manufacturing activity contracts in October, PMI data shows
Türkiye’s manufacturing sector’s activity contracted in October at the fastest pace since June as declines in output and new orders weighed on performance, a closely watched business survey showed on Monday.
The headline Istanbul Chamber of Industry (ISO) Türkiye Manufacturing PMI, compiled by S&P Global, fell to 47.3 in October from 47.9 in September.
The 50 mark separates growth from contraction.
Output was cut for a fifth straight month and at the fastest pace in four months, while new orders fell for a 40th consecutive month. The decline in new business was the sharpest since July, with export orders also continuing to soften.
Input costs and output prices both rose, although their inflation rates eased from September. S&P Global said 29% of respondents reported higher input prices, citing oil, raw materials and exchange rate weakness.
Manufacturers still expected output to rise over the coming year, but confidence slipped to a three-month low.
“The economic environment facing Turkish manufacturers is such that they continued to find it difficult to generate growth as the final quarter of the year began,” said Andrew Harker, economics director at S&P Global Market Intelligence.
“There was some better news on employment, which eased only modestly, and this should hopefully help to limit the extent to which output moderates in the months ahead,” he added.
Members of Germany’s powerful IG Metall trade union launched warning strikes in the metalworking and electrical sectors in the early hours of Sunday, seeking better pay and job guarantees.
Around 300 employees of Thyssenkrupp’s Rasselstein unit as well as workers from surrounding companies joined the first walkout at midnight, the union said.
The union has rejected an offer made by employers during a second round of wage negotiations, describing it as a “minus offer.”
Employers have offered 1% of annual gross pay as a one-off payment in the summer of 2027 and an additional 1.3% increase from July 2028.
The union seeks a 5% pay raise over 12 months, as well as guarantees for jobs. The strike action at industrial sites is expected to spread across Germany next week.
IG Metall, Germany’s largest union, aims to increase pressure during collective bargaining negotiations on behalf of approximately 3.7 million employees.
“The midnight warning strike at thyssenkrupp Rasselstein is merely the start of a massive phase of warning strikes,” Jorg Kohlinger, head of IG Metall’s central district, said.
The union said further warning strikes would follow in the coming days across the bargaining region covering the states of Hesse, Rhineland-Palatinate and Saarland as well as in Thuringia.
South Korean exports nearly doubled in October, marking the sharpest jump in more than 50 years, as continued demand for AI products propelled shipments of the country’s chips, government data showed on Sunday.
Exports from Asia’s fourth-largest economy, a bellwether for global trade, rose 93.7% from the same month last year to $115.28 billion, slightly higher than a median 93.2% rise forecast in a Reuters poll of economists.
The surge, boosted by having more working days than a year earlier due to the timing difference in the Chuseok holidays, exceeded September’s 83.7% gain and was the strongest since January 1974.
Riding the global boom in AI investment, South Korea’s economy grew faster than expected in the third quarter on strong semiconductor exports and investments, with chipmakers Samsung Electronics and SK Hynix posting surging profits.
“With exports continuing solid growth of more than $110 billion in October, it is becoming certain that annual exports of $1 trillion will be reached within November,” said Kim Jung-kwan, the minister of trade, industry and resources.
South Korea’s exports for the January-October period totaled $930 billion. Annual exports of more than $1 trillion will make South Korea the fourth country in the world to reach the milestone, after the U.S., China and Germany.
Overseas sales of semiconductors jumped 259.4% in October to $56.44 billion, as prices and volume remained high on continued facility investment by global big tech firms in the competition for AI industry leadership, the trade ministry said.
Computer sales spiked 496.6% on increasing server demand for AI services.
Shipments to China rose 133.6%, while those to the U.S. grew by 185.8%, to Europe by 56.4% and to Southeast Asia by 128.0%.
South Korea’s imports rose 36.0% to $72.78 billion, after rising 26.0% in September, to post the biggest annual increase since January 2022 on higher crude oil prices, as well as demand for semiconductor manufacturing equipment and automobiles.
The nation posted a monthly trade surplus of $42.50 billion, narrower than a record $49.97 billion surplus in the previous month.
Türkiye and Kazakhstan are deepening defense cooperation through ongoing initiatives and steps taken by the leading companies, as the two countries also aim to increase trade volume to $15 billion (TL 749.01 billion).
Türkiye is known for contributing to the defense needs of friendly and allied countries, while its approach to defense cooperation with Turkic states goes beyond simply selling products. Lasting partnerships are being established through local production, technology sharing, maintenance and repair capabilities, and long-term institutional cooperation.
Defense industry cooperation is a key pillar of bilateral ties with Kazakhstan, a top Turkish defense official said recently, as President Recep Tayyip Erdoğan hosted Kazakh President Kassym-Jomart Tokayev and his delegation prior to the Turkic states summit.
“We will diversify and deepen our areas of cooperation with friendly and brotherly Kazakhstan within the framework of a win-win approach,” Haluk Görgün, the head of the Presidency of Defense Industries (SSB), said.
Accordingly, a series of concrete steps have been taken in defense industry cooperation with Kazakhstan, building on ties that date back many years.
Projects in Kazakhstan
Leading Turkish defense companies such as Aselsan, Turkish Aerospace Industries (TAI) and Otokar have investments and major projects underway in Kazakhstan.
One of the most tangible examples of Türkiye’s defense industry investments in Kazakhstan is the Kazakhstan Aselsan Engineering (KAE) joint venture, established between Aselsan and Kazakhstan Engineering, Kazakhstan’s state-owned defense industry company.
KAE manufactures day and night vision systems, thermal imaging sights, electro-optical reconnaissance and surveillance systems, remote-controlled weapon systems, professional radio and communication systems, as well as electronic board assemblies and infrared lenses.
Through this partnership, cooperation has moved beyond the sale of ready-made defense products from Türkiye, contributing instead to the development of production infrastructure, technical expertise and local industrial capabilities in Kazakhstan.
Kazakhstan to be new home for Anka drones
Another major area of defense industry cooperation between the two countries involves unmanned aerial vehicles (UAVs).
Kazakhstan, which has strengthened its air force with Anka unmanned aerial vehicles, developed by TAI, is preparing to become the platform’s new production base abroad, according to the report by Anadolu Agency (AA) on Saturday.
A memorandum of understanding (MoU) was signed between TAI and Kazakhstan Engineering on the production, maintenance and repair of Anka stealth drones in Kazakhstan.
Most recently, in May, an agreement on establishing a joint venture (JV) for the production and maintenance of Anka UAVs was implemented.
In line with this, to support the goal of local production, TAI and Kazakh Civil Aircraft Repair Plant No. 406 established a partnership under the name TA-406.
The two sides are said to be continuing their work on joint production. Mutual site visits have been conducted, while discussions on the feasibility study are ongoing, according to AA.
Once this process is completed, Kazakhstan will become the first country outside Türkiye to manufacture Anka UAVs.
Similarly, Otokar, one of Türkiye’s leading land vehicle manufacturers, has also expanded its presence in Kazakhstan beyond the sale and export of armored vehicles.
Establishing a permanent presence through its Otokar Central Asia company, Otokar has positioned Kazakhstan as a hub for its operations in the Central Asian market.
Lifting trade with Kazakhstan
At the same time, Türkiye and Kazakhstan aim to reach $15 billion in bilateral trade volume, for which they need to diversify the products traded, facilitate mutual market access and involve more companies in trade, a head of a business council said.
“To achieve this target, we need to diversify the products traded, facilitate mutual market access and involve more companies in bilateral trade. While increasing Türkiye’s share in the Kazakhstan market, we also attach importance to the balanced development of two-way trade,” said Selçuk Yüce, head of the Türkiye-Kazakhstan Business Council at the Foreign Economic Relations Board (DEIK).
Yüce noted that manufacturing, mining, agriculture and food processing stood out among the key sectors.
“I also consider health care, chemicals, pharmaceuticals and medical equipment manufacturing among the priority areas. We can bring Türkiye’s expertise in these fields together with Kazakhstan’s needs,” he told AA, in remarks published on Sunday.
“Energy, logistics and digital technologies are other sectors that could provide a broader foundation for our economic partnership,” he added.
He also recalled that the bilateral trade volume reached approximately $10 billion based on the 2025 figure and added that the priority was to make this growth stable and sustainable.
Middle Corridor
Yüce, also noting the strategic importance of the Middle Corridor, said: “Extending from China through Kazakhstan, the Caspian Sea and the South Caucasus to Türkiye, this route contributes to the diversification of trade corridors.”
However, he argued that geographical advantages alone are not enough for a corridor to become a preferred route.
“Regular services, predictable delivery times and competitive transportation costs are also necessary. Therefore, it is important for investments in ports, railways and logistics centers to go hand in hand with the digitalization of customs procedures,” he noted.
Linking China and Europe via the Caucasus, the Middle Corridor trade route is gaining in geopolitical and economic importance, especially following the escalation of the conflict in the Middle East.
Türkiye and Kazakhstan stand among the key players and the countries along the corridor route.
Monthly inflation in Istanbul accelerated in October compared to the reading a month earlier, data from the Istanbul Chamber of Commerce (ITO) showed on Sunday, although the annual increase in prices slowed down.
As the indicator of retail price movements, the monthly index rose 2.47% in October, ITO said in a news bulletin. This compared to 2.11% registered in September.
On an annual basis, the ITO-measured Istanbul Consumer Price Index eased to 32.47% compared to 33.55% a month earlier.
Seen as a barometer of price tendencies in Türkiye’s most populous city, the index provides an insight in a change of prices affecting close to a quarter of the country’s population.
The nationwide data for October inflation will be released by the Turkish Statistical Institute (TurkStat) on Tuesday.
In September, inflation dropped below 30% range, cooling to 29.73% on a yearly basis.
According to ITO, the largest contributor to the monthly increase in prices was clothing and footwear (10.6%), followed by communication services (5.05%) and entertainment and culture (5.32%).
On a yearly basis, the surge in consumer prices in Istanbul was led by education, health services and housing, the chamber said.
Türkiye has appointed new leadership at the top of the country’s market regulator, including a new chief following a recent investment fund crisis, according to the decision published in the Official Gazette on Sunday.
Muhsin Atcı has been named the new chair of the Capital Markets Board (SPK), with Ersin Başar Ekmekci appointed as deputy chair, according to the decision signed off by President Recep Tayyip Erdoğan.
Atcı’s predecessor, Mahmut Sütçü, was dismissed from his post as SPK chair on Oct. 20 amid the turmoil affecting the country’s stock exchange and the liquidation of a number of funds.
The crisis began in the middle of September after several funds said they could not meet investors’ redemption requests during a market sell-off. That prompted a wide investigation into suspected price manipulation in a number of thinly traded stocks.
SPK quickly suspended trading in 131 funds run by seven asset management companies and placed them into liquidation.
Atcı was previously head of the country’s tax audit board.
The Official Gazette decision also appointed Yasemin Girici as a member of the board.
Atcı has spent his 23-year career in tax enforcement, rising through the ranks to lead the Tax Inspection Board (VDK) in October 2023.
Along the way, he oversaw audits of some of the country’s largest companies, building extensive experience in complex corporate and financial investigations.
He also has a master’s degree in development policy from Duke University and a graduate degree in financial economics from Boston University.
Girici served as a director on the board of the European Bank for Reconstruction and Development (EBRD), representing Türkiye, Romania, Azerbaijan, Moldova, Kyrgyzstan and Algeria.
She holds a master’s degree in economics from Rutgers University in the U.S.
The new names, with years of professional experience, including in auditing procedures, are seen as helping restore confidence in the market, increasing deterrence in auditing and protecting investors.
Muhsin Atcı has been named as the new chair of the Turkish market regulator, Capital Markets Board (SPK), with Ersin Başar Ekmekci appointed as deputy chair, according to a decision published in the country’s Official Gazette on Sunday.
Atcı’s predecessor, Mahmut Sütçü, was dismissed from his post as SPK chair on Oct. 20 amid the turmoil affecting the country’s stock exchange and the liquidation of a number of funds.
The crisis began in the middle of September after several funds said they could not meet investors’ redemption requests during a market sell-off. That prompted a wide investigation into suspected price manipulation in a number of thinly traded stocks.
SPK quickly suspended trading in 131 funds run by seven asset management companies and placed them into liquidation.
Atcı was previously head of the country’s tax audit board.
The Official Gazette decision, signed by President Recep Tayyip Erdoğan, also appointed Yasemin Girici as a member of the board.
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