The sector's Purchasing Managers' Index (PMI) rose to 47.2 in March from 46.4 in February, staying below the 50-point line that separates expansion from contraction, a panel from the Istanbul Chamber of Industry and IHS Markit said.
New orders in Turkey's goods-producing sector fell as a result of challenging demand conditions, while output came closer to stabilisation point, the panel said, adding that foreign demand eased amid reports of weaker European demand.
The rate of input costs picked up in March as well as a sharper rise in output prices while output and employment levels slowed with a lesser extent.
"There appears to be light at the end of the tunnel in the Turkish manufacturing sector, with both output and employment scaled back at the slowest rates since mid-2018," said Andrew Harker, associate director of IHS Markit.
"While securing new orders remains a key challenge for firms amid ongoing demand difficulties, the sector in general looks to be moving towards stabilisation."
Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.