Turkey: Manufacturing PMI falls in May
The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI) fell to 48.4 in May from 49.3 in April. 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.
The key driver behind the latest PMI reading was a challenging demand environment, with new orders and exports both moderating more sharply than in the previous month. This slowdown in demand, in turn, prompted manufacturers to scale back production and reduce staffing levels, marking the largest cutback in output in 2024 so far. Additionally, some firms reported capacity constraints as a limiting factor for expanding production, further contributing to the downturn.
Regarding prices, May witnessed an easing of inflationary pressures, with both input costs and output prices increasing at weaker rates than in recent months.