Turkey’s manufacturing sector continued contracting in July as the purchasing managers' index (PMI) was below the 50.0 no-change mark for the fifth month in a row, according to U.S.-based financial services company S&P Global on Monday.
The manufacturing PMI dropped to 46.9 in July from 48.1 in June, pointing to the most marked slowdown in business conditions since May 2020.
The decline was led by a lack of demand, exacerbated by uncertain market conditions and ongoing price pressures.
Both output and new orders eased in July, and to the greatest degree since the first wave of the COVID-19 pandemic.
Firms scaled back purchasing activity while stocks of inputs decreased for the first time in three months in July.
"Market uncertainty, soft demand and price pressures meant for a tricky time for Turkish manufacturers as the second half of the year began, with only new export orders and employment the relatively positive aspects of the latest PMI survey," Andrew Harker, economics director at S&P Global, said.
"Reduced price pressures may provide some opportunities for firms to entice customers back in the months ahead," he added.
