Türkiye's manufacturing sector showed signs of improvement in February but remained under the threshold separating contraction and growth, a top survey showed on Monday.
The Purchasing Managers' Index (PMI) increased slightly to 48.3 from 48.0 in January, a report by S&P Global and the Istanbul Chamber of Industry (ISO) revealed.
The headline Istanbul Chamber of Industry Türkiye manufacturing PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
February marked the 20th consecutive month of easing in new business, although the pace of moderation slowed compared to January, the S&P Global said.
"Business conditions remained challenging in the Turkish manufacturing sector in February as muted market demand fed through to slower new orders, output and employment," the report said.
"Turkish manufacturing firms continued to struggle to gain momentum in the opening part of 2025," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
"With firms seeing further challenges in securing new business, manufacturers were reluctant to take on staff or invest in new materials."
The survey highlighted a pronounced slowdown in new export orders, the most significant since last October, attributed to uncertainty in international markets. This contributed to reduced work backlogs for the 20th month in a row.
Input and output prices have risen fastest since September, driven by higher costs for raw materials, transportation and wages, compounded by currency weakness.
Despite these headwinds, some optimism remains for the year ahead, with over 29% of respondents expecting increased output, although sentiment dipped slightly from January.
Overall, the data suggests that the Turkish manufacturing sector continues to face certain hurdles, with inflationary pressures and subdued demand weighing on business conditions.
However, as another sign of optimism, the data from the Turkish Statistical Institute (TurkStat) revealed on Monday that annual inflation in Türkiye eased below 40% for the first time since mid-2023.
