Turkey’s Manufacturing Capacity Usage Drops in August 2025

Turkey’s manufacturing sector experienced a noticeable slowdown in August 2025, as the capacity utilization rate declined both monthly and annually. According to the Central Bank of the Republic of Turkey (CBRT) and its Economic Tendency Survey, this drop highlights a moderation in production activity across key industrial segments.

Capacity Utilization Trends

In August 2025, the seasonally adjusted capacity utilization rate fell by 0.5 percentage points compared to the previous month, reaching 73.6%. Meanwhile, the unadjusted rate decreased by 0.7 points to 73.5%, marking a 2.2-point decline compared to August 2024, when it stood at 75.7%. This pattern indicates that Turkey’s manufacturing momentum has slowed slightly over the past year.

The CBRT’s survey emphasizes that fluctuations in capacity utilization can reflect broader economic trends, including investment patterns, domestic consumption, and global demand pressures.

Investment and Consumer Goods See Declines

A deeper look at subcategories reveals that the drop in capacity utilization was widespread across investment goods, intermediate goods, and consumer products.

• Durable consumer goods fell to 72.1%, while non-durable consumer goods declined to 70.3%.

• Investment goods, which are key indicators of long-term economic growth, saw a more significant reduction, falling to 68.1% from 71.1% in July 2025.

• The intermediate goods category remained stable at 72.5%, with the overall consumer goods average at 73.5%.

These figures suggest that while some segments remain relatively stable, sectors tied closely to investment and durable consumption are experiencing slower production activity.

Sectoral Breakdown: Electronics, Textiles, and Automotives Lag

Within the manufacturing industry, several sub-sectors recorded utilization rates below the overall average.

• Electronics manufacturing reached 68.4%,

• Textile production dropped to 68.5%, and

• Motor vehicle manufacturing declined more sharply to 64.9%.

Machinery and equipment production also remained below average at 66.4%, reflecting softer industrial demand and potential global supply chain pressures.

These declines are consistent with trends in global manufacturing, where sectors heavily dependent on technological inputs and international trade often experience greater volatility during periods of economic adjustment.

Sectors Outperforming the Average

Not all industries followed the downward trend. Certain sectors continued to record above-average capacity utilization, suggesting pockets of resilience within Turkey’s manufacturing landscape.

• Tobacco manufacturing reached 85.9%,

• Wood product manufacturing stood at 85.0%, and

• Paper production achieved 84.3%.

These strong performers indicate that domestic demand in certain traditional industries remains robust, even as broader industrial activity softens.

Implications for Turkey’s Industrial Outlook

The overall slowdown in capacity utilization provides critical insights for policymakers, investors, and businesses. Lower utilization rates in investment and durable consumer goods could signal reduced industrial expansion in the near term. Conversely, sectors like tobacco, paper, and wood products demonstrate stability, highlighting areas where production remains resilient despite wider economic pressures.

Analysts suggest that monitoring capacity utilization trends is essential for understanding potential shifts in employment, production efficiency, and investment priorities. The August 2025 decline may prompt businesses to adjust production schedules, optimize resources, or reconsider supply chain strategies.

Furthermore, these statistics can inform government economic policy, particularly in stimulating sectors lagging behind and supporting investment-driven growth. As one CBRT report notes, understanding the interplay between sector-specific trends and aggregate manufacturing activity is key to predicting economic momentum.

Turkey’s manufacturing sector shows mixed signals in August 2025. While capacity utilization fell to 73.6%, signaling a moderate slowdown, certain sectors such as tobacco, wood, and paper continue to perform strongly. This divergence underscores the complexity of industrial dynamics and highlights the need for strategic monitoring of sector-specific trends.

For businesses, investors, and policymakers, these numbers provide valuable insight into Turkey’s industrial landscape, emphasizing the importance of targeted interventions and adaptive strategies to sustain growth and efficiency.