Manufacturing PMI declines in March

ISTANBUL

Türkiye’s manufacturing sector faced tougher conditions in March 2025, with the Istanbul Chamber of Industry (İSO) Türkiye Manufacturing PMI dropping to 47.3 — the lowest since October 2024 — signaling a year-long slowdown, the latest survey revealed.

The PMI, where readings above 50 indicate growth, fell from February’s 48.3, staying below the threshold for over 12 months.

New orders declined for the 21st consecutive month, with the sharpest drop since October 2024, while export orders saw their steepest fall since November 2022. Survey respondents blamed tough market conditions for curbing demand and dragging down production, which also hit its most severe slowdown since October 2024.

Manufacturers cut jobs for the fourth straight month in March, though the reduction was modest and the mildest since December 2024. Purchasing activity slowed, but input and finished goods stocks remained stable, ending a 10-month decline in the latter.

Weak demand allowed suppliers to speed up deliveries, shortening lead times for the first time in six months and at the fastest pace since December 2022.

Input costs soared, driven largely by a weakening Turkish lira, though inflation eased to its lowest in three months. Final product price hikes also slowed, marking the smallest increase since the year began.