Turkey: Manufacturing PMI falls in July
The Istanbul Chamber of Industry Türkiye Manufacturing PMI fell to 47.2 in July from 47.9 in June. As a result, the index moved further below the 50.0 no-change threshold, signaling a faster deterioration in manufacturing-sector operating conditions compared to the previous month.
The decline was driven by a marked softening of new orders, the joint-largest in 20 months—matching the level seen in November 2023—amid challenging market conditions. New export orders also experienced a swifter slowdown in July. This muted demand led manufacturers to reduce production for the fourth consecutive month and at the fastest pace since November 2022, while employment fell for the sixth month in a row, reflecting the impact of softer new orders, resignations and retirements.
Regarding prices, July saw a sharp increase in input costs, attributed to higher prices for raw materials and oil, as well as the weakening of the lira against the U.S. dollar. The rate of inflation in input costs quickened from June, as did the rate of selling price increases. However, the rise in charges was relatively muted.