Real Sector Confidence Index Falls and TYH Textile Closes on the Economic Agenda
While the Real Sector Confidence Index in the Turkish economy declined to 101.1, TYH Textile declared concordat and laid off 5 thousand employees, and marriage support payments were made.
On October 21, 2026, reflecting the stagnation in the manufacturing industry within the Turkish economy, the Real Sector Confidence Index dropped by 1.4 points to 101.1. Meanwhile, due to rising costs and exchange rate pressures, TYH Textile declared concordat, shutting down 7 of its 13 factories and terminating the employment of 5 thousand workers. During the same period, CBRT data, marriage support payments, price drops for olives in the agricultural sector, and inflation developments in Germany stood out on the economic agenda.
Reflecting the stagnation in the manufacturing industry, the Real Sector Confidence Index fell by 1.4 points compared to the previous month in September, declining to 101.1. On the industry and production front, TYH Textile, one of Turkey's leading ready-to-wear manufacturers, announced that it entered a concordat process due to rising costs and exchange rate pressures. The company stated that it shut down 7 of its 13 factories and laid off 5 thousand employees. According to the Central Bank of the Republic of Turkey's (CBRT) Financial Accounts Report for the second quarter of 2026, the financial assets of domestic residents reached 237 trillion liras, and the ratio of the net financial position deficit to GDP rose to 24.7 percent.
Within the scope of social policies, Minister of Family and Social Services Mahinur Özdemir Göktaş announced that a total of 1 billion 756 million TL in marriage support payments was made to 15 thousand 468 young people in October through the Family and Youth Fund. While allegations of manipulation in Borsa İstanbul and assessments that the Turkish lira is 10 percent more valuable according to the PPI-based real effective exchange rate index drew attention in the markets, olive producers in Osmaniye found themselves in a difficult situation as prices dropped from 80 TL to 15 TL in the agricultural sector. On the global side, the Bundesbank reported that inflation in Germany hit a 3-year high.
Sources
- yenicaggazetesi.com · Link