Turkey Factory Activity Nears Stabilization

2026-06-01 07:16 By Judith Sib-at 1 min. read

The Istanbul Chamber of Industry Türkiye Manufacturing PMI rose to 49.8 in May 2026 from 45.7 in April.

The reading was the highest since March 2024 and signaled a near-stabilization in manufacturing sector conditions.

Output returned to growth after falling sharply in April.

External demand also improved, with new export orders rising, ending a 20-month period of decline.

This helped to cushion the drop in total new orders, which nevertheless fell slightly during the month.

Employment levels were reduced for another month, albeit to the smallest extent so far this year.

Purchasing activity rose for the first time in over two years as some firms sought to build inventories amid rising costs and supply-chain disruptions caused by the Middle East war.

Suppliers' delivery times lengthened further, with vendor performance deteriorating for the seventh month.

While input costs continued to rise sharply, the rate of inflation eased, a trend that was also reflected in output prices.



News Stream
Turkey Factory Activity Nears Stabilization
The Istanbul Chamber of Industry Türkiye Manufacturing PMI rose to 49.8 in May 2026 from 45.7 in April. The reading was the highest since March 2024 and signaled a near-stabilization in manufacturing sector conditions. Output returned to growth after falling sharply in April. External demand also improved, with new export orders rising, ending a 20-month period of decline. This helped to cushion the drop in total new orders, which nevertheless fell slightly during the month. Employment levels were reduced for another month, albeit to the smallest extent so far this year. Purchasing activity rose for the first time in over two years as some firms sought to build inventories amid rising costs and supply-chain disruptions caused by the Middle East war. Suppliers' delivery times lengthened further, with vendor performance deteriorating for the seventh month. While input costs continued to rise sharply, the rate of inflation eased, a trend that was also reflected in output prices.
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Turkey Factory Activity Contracts Most in 1½ Years
The Istanbul Chamber of Industry Türkiye Manufacturing PMI fell to 45.7 in April 2026 from 47.9 in March, marking the largest deterioration in business conditions since September 2024. The decline reflected intensifying impacts from the war in the Middle East, with firms reporting weaker demand, rising costs, and ongoing supply-chain disruptions. Output contracted at a rate matching the steepest seen since the COVID-19 pandemic, while total new orders and export demand fell more sharply than in the previous month. Inflationary pressures intensified, with input cost inflation accelerating to its fastest pace since January 2024, while output prices rose at the sharpest rate in over two years. Supplier delivery times lengthened significantly, marking the worst deterioration since February 2023. In response, manufacturers reduced employment, purchasing activity, and inventories, with input stock depletion the steepest in six years.
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The Istanbul Chamber of Industry Türkiye Manufacturing PMI fell to 47.9 in March 2026 from 49.3 in February. This marked the lowest reading since October 2025, due to sharper slowdowns in both total new orders and export orders amid weaker demand caused by the war in the Middle East. Output also declined to its lowest level since last November. The conflict further intensified inflationary pressures, resulting in higher costs for freight, fuel, and oil. Consequently, input costs and output prices rose at their fastest rates in 23 and 25 months, respectively. Lead times lengthened to the greatest extent since August 2024. Moreover, manufacturers reduced employment to the largest degree in six months and also cut back on purchasing activity and inventory holdings.
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