Türkiye's manufacturing sector shrank more sharply in April, as the war in Iran triggered higher prices, supply shortages and softer demand, a business survey showed on Monday.
The Istanbul Chamber of Industry (ISO) Türkiye Manufacturing PMI, compiled by S&P Global, fell to 45.7 in April from 47.9 in March.
The 50 mark separates growth from contraction.
Manufacturing production was cut to the joint-steepest extent since the COVID-19 pandemic, while the decline extended to 25 straight months.
Demand weakened further, the survey showed. Total new orders and export business both fell by much more than in March, while firms linked softer order inflows partly to mounting inflationary pressures.
Cost pressures intensified again, with input cost inflation quickening, the survey showed, with higher fuel and oil costs due to the impact of the war.
Firms cut employment, purchasing activity and inventories, with stocks of inputs falling and suppliers' delivery times lengthening.
"April saw an intensification of the impact of the war in the Middle East on the Turkish manufacturing sector, with firms reporting muted demand, strengthening inflation and supply-chain disruption," Andrew Harker, economics director at S&P Global Market Intelligence, said.
"Concerns around how long the effects of the conflict may persist mean that manufacturers are in a cautious mood, scaling back employment, purchasing and inventories accordingly."
