Turkey: Manufacturing PMI falls in June
The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI) fell to 47.9 in June from 48.4 in May. As a result, the index moved further below the 50.0 no-change threshold, and signaled a faster deterioration in manufacturing-sector operating conditions compared to the previous month.
Subdued demand conditions were a significant driver behind the latest PMI reading, leading to a slowdown in production and new orders. Output moderated at a slightly softer pace than in the prior month, while new orders fell at the fastest clip year to date. This moderation in output and new orders contributed to a reduction in purchasing activity and employment—the latter by the greatest amount since October 2022.
Regarding prices, the rate of input cost inflation slowed down for the fifth consecutive month, reaching the lowest level since May 2023. Consequently, firms raised their selling prices at the slowest pace in four-and-a-half years.