ISTANBUL, July 1 — Türkiye’s manufacturing sector remained under pressure in June, with business conditions deteriorating for the 27th consecutive month as the headline Purchasing Managers’ Index (PMI) fell to 47.1 from 49.8 in May, according to the latest survey compiled by S&P Global for the Istanbul Chamber of Industry (ISO). A PMI reading below 50 indicates contraction, while a reading above that level signals expansion.

The decline reflected weaker demand and heightened market uncertainty, leading manufacturers to scale back production after a brief return to growth in May. New orders continued to fall, while export orders slipped back into contraction after posting their first increase in nearly two years during the previous month. Employment and purchasing activity also declined as firms adjusted to softer demand.

The survey showed that supply chain pressures persisted, with suppliers’ delivery times lengthening again as geopolitical tensions in the Middle East disrupted the flow of raw materials. However, the deterioration in delivery performance was the least severe since February.

On the pricing front, both input cost inflation and output price inflation eased for a second consecutive month. Although manufacturers continued to face higher costs for oil and raw materials, the pace of input cost increases slowed to its weakest level since November. Inventories of both raw materials and finished goods declined as companies responded to subdued demand.

The June reading reversed much of the improvement seen in May, when the PMI had climbed to its highest level since March 2024, highlighting the continued fragility of Türkiye’s manufacturing sector amid weak domestic demand, softer export markets and ongoing geopolitical uncertainty.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök