This marked the lowest reading in eight months and indicating a solid deterioration in operating conditions. Meanwhile, the rate of input cost inflation ticked higher, but firms raised their output prices at a slower pace given muted customer demand, according to a report by Istanbul Chamber of Industry in collaboration with S&P Global.
June’s figure continues a downward trend in business activity since April 2024. Weak domestic and international demand saw both total new orders and export orders decline at the fastest rates in three months. The subdued inflow of new business led firms to scale back production for the 15th consecutive month, with the latest fall in output being the steepest since October 2024.
As production waned, employment fell at the fastest pace in nine months, extending the current trend of workforce reductions to seven consecutive months. Purchasing activity also saw its sharpest decline since September 2024, while stocks of purchases fell and post-production inventories rose for the first time in three months due to sluggish sales.
Input cost inflation quickened slightly amid ongoing currency weakness and geopolitical tensions involving Iran. However, output prices rose at the slowest pace of 2025 so far, with many firms unable to pass on higher costs due to restrained customer demand. Suppliers’ delivery times lengthened for the first time in four months, often attributed to raw material shortages.
Overall, the data reflects continued strain in Turkiye’s manufacturing sector, with muted demand and geopolitical pressures hampering recovery, added the report.
“The struggles continued for Turkish manufacturing firms in June, with latest PMI data pointing to an increasingly challenging demand environment. As such, firms looked to scale back operations and moderated output to the largest degree since October last year,” said Andrew Harker, economics director at S&P Global Market Intelligence. “Despite this, firms still had an excess of stocks of finished goods, which increased for the first time in three months. The latest PMI reading completes a difficult first half of the year, with hopes that better will come over the second half of 2025.”
ALCHEMPro News Desk (SG)
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