Türkiye's manufacturing activity contracted again in June after a slight rebound in May, as the war in the Middle East disrupted demand and supply, a business survey showed on Wednesday.

The Istanbul Chamber of Industry's (ISO) Türkiye Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 47.1 in June from 49.8 in May. The 50-mark separates growth from contraction.

Output returned to decline after rising slightly in May, with firms citing market uncertainty linked to the conflict in the Middle East, softer new orders and higher prices.

Demand weakened further, with total new orders posting a solid decline, and new export business also falling again after expanding in May.

The June survey reversed some of May's improvement and extended the sector's downturn to 27 consecutive months. Firms also reduced stocks of purchases and finished goods amid muted demand conditions, the panel showed.

"The Turkish manufacturing sector took a step back in June, posting a renewed softening of production amid muted new orders. Anecdotal evidence from the survey indicated that the war in the Middle East continued to be the principal cause of the challenges facing firms," said Andrew Harker, economics director at S&P Global Market Intelligence.