Manufacturing Sectors in Romania and Türkiye Contract in October
Romania and Türkiye reported manufacturing contractions in October, while Greece saw growth slow amid rising input costs and geopolitical instability across the region.
Manufacturing activity across Southeast Europe faced significant headwinds in October 2026, with S&P Global Market Intelligence and other financial institutions reporting widespread instability. Romania's manufacturing sector returned to contraction as the BCR Romania Manufacturing PMI fell to 48.7 from September's 50.9, marking the first decline since June. This downturn was driven by weak demand and market uncertainty, with business sentiment hitting its lowest level since the survey's inception.
Türkiye experienced its sharpest contraction since June, with its Manufacturing PMI dropping to 47.3. The sector suffered from a 40-month streak of falling new orders and rising input costs linked to oil prices and exchange rate weakness. While employment in Türkiye continued to decline, the pace of job losses slowed compared to previous months.
In contrast, Greece's manufacturing sector expanded for the 45th consecutive month, though the growth rate slowed to its weakest level since May, with the PMI declining to 53.3. Greek manufacturers faced rising costs for energy and transportation, alongside supply chain disruptions caused by conflict in the Middle East. Across all three nations, geopolitical uncertainty and rising input costs remained primary drivers of economic volatility.
