S&P Global Reports Divergent Manufacturing Trends in Russia and Turkey

Manufacturing performance diverged across Russia and Turkey in July 2026, according to data from S&P Global. Russia's manufacturing sector expanded at its fastest pace in 18 months, with the Purchasing Managers’ Index rising to 50.7 from 50.3 in June. This growth was driven by strong domestic demand, although foreign export orders fell at the fastest rate since October 2022. Russian firms faced intensifying price pressures from fuel shortages and transport issues, contributing to the lowest level of business confidence since May 2020.

Conversely, Turkey's manufacturing sector continued to contract. The Istanbul Chamber of Industry Turkey Manufacturing PMI rose slightly to 47.7 from 47.1 in June, remaining below the 50-mark threshold for growth. This downturn led manufacturers to cut both output and jobs. Andrew Harker of S&P Global Market Intelligence noted that a muted demand environment, worsened by the war in the Middle East, specifically hampered export demand. However, Turkey saw a relative easing of inflation, as input costs rose at their slowest pace since November 2025.