Manufacturing PMI falls to eight-month low in June

ISTANBUL

The headline Istanbul Chamber of Industry (İSO) Türkiye Manufacturing PMI dropped to 46.7 in June from 47.2 in May.

The June reading was the lowest in eight months. Any figure greater than 50 indicates overall improvement in the sector.

Manufacturers in Türkiye continued to face challenging demand conditions in June, resulting in sharper slowdowns in new orders, output, employment and purchasing activity, the survey said on July 1.

Meanwhile, the rate of input cost inflation ticked higher, but firms raised their output prices at a slower pace given muted customer demand, it added.

Demand weakness meant that new orders moderated again in June, extending the current sequence which began two years previously, while new export orders also eased, it noted.

A lack of new orders meant that manufacturers scaled back production at the end of the second quarter, the survey said, adding that the pace of moderation was the most pronounced since last October.

In turn, employment and purchasing activity were also reduced to larger extents in June.

"The struggles continued for Turkish manufacturing firms in June, with latest PMI data pointing to an increasingly challenging demand environment,” commented Andrew Harker, economics director at S&P Global Market Intelligence.

The latest PMI reading completes a difficult first half of the year, with hopes that better will come over the second half of 2025, Harker said.