Contraction in manufacturing activity continues in June

ISTANBUL

The Turkish manufacturing PMI was at 47.9 in June, down from 48.4 in May and below the 50 no-change mark for the third consecutive month, a joint survey by S&P Global and the Istanbul Chamber of Industry (İSO) has shown.

The index signaled a modest easing of business conditions in the Turkish manufacturing sector and one that was the most pronounced in 2024 so far, the survey said.

Any figure greater than 50 indicates overall improvement in the sector.

Muted demand conditions remained a key feature of the sector at the end of the second quarter, causing further slowdowns in both new orders and production, the report added.

Output moderated for the third month running and at a solid pace, albeit one that was slightly softer than in the previous month, according to the results of the monthly survey.

“The slowdown in new orders meanwhile was greater than that seen in May amid reports of weakness in both domestic and export markets.”

The moderation in new business from abroad was less marked than for total new orders.

Lower workloads meant that manufacturers scaled back their employment and purchasing activity again in June, and at sharper rates than in the previous survey period, stressed the survey.

For the fifth month running, the rate of input cost inflation slowed in June, with the latest rise in input prices the weakest since May 2023.

“Where purchasing costs increased, panelists mentioned higher prices related to raw materials and sea transportation, plus currency weakness,” the survey said.

Panelists also mentioned that delays due to sea transportation issues, particularly as a result of disruption in the Red Sea, caused a further lengthening of suppliers' delivery time.