Turkish Manufacturing Sector Contracts in May as Demand Weakens 

Türkiye's manufacturing sector continued to contract in May, with firms scaling back production, employment, and purchasing activity amid muted demand conditions, a survey showed on Monday.

The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers' Index (PMI) fell slightly to 47.2 in May from 47.3 in April, marking the 14th consecutive month of moderation in the sector. A PMI reading below 50 indicates a contraction in activity.

New orders declined, reflecting a persistently softening demand environment, and contributed to the most marked slowdown in manufacturing production since last October, the survey said.

Employment and purchasing activity were also scaled back, while manufacturers reduced their inventories of both purchases and finished goods, the survey also showed.

Input costs continued to rise sharply, but the pace of inflation eased from the one-year high seen in April, the survey said, while output price inflation also softened, reaching its lowest level in 2025 so far.

"Firms will be hoping that growth can be kick-started in the near future. There were at least some signs of inflationary pressures easing over the month which could provide some respite for manufacturers," said Andrew Harker, Economics Director at S&P Global Market Intelligence.

aawsat.com