Manufacturing activity slows in June, shows survey

ISTANBUL  

The headline Istanbul Chamber of Industry Türkiye Manufacturing PMI posted 47.1 in June, down from 49.8 in May, pointing to a solid moderation in the health of the manufacturing sector during the month.

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

Respondents linked slower production to a range of factors, including market uncertainty caused by the war in the Middle East, a further softening of new orders and higher prices, S&P Global said in a statement on July 1.

The rate of input cost inflation continued to ease from April’s recent peak and was the slowest since last November, it noted.

Similarly, the rate of output price inflation softened and was the weakest in the year-to-date.
The conflict also continued to impact the ability of firms to secure raw materials, with suppliers’ delivery times lengthening again in June, the statement said.

“Anecdotal evidence from the survey indicated that the war in the Middle East continued to be the principal cause of the challenges facing firms,” commented Andrew Harker, economics director at S&P Global Market Intelligence.

“Some more positive news related to the conflict in recent weeks will hopefully help to improve business conditions in the months ahead,” he added.