Türkiye's factory activity remained in contraction territory in September as the Middle East war continued to weigh on companies, a closely watched survey showed on Thursday.

S&P Global said on Thursday that its Türkiye Purchasing Managers' ​Index (PMI) fell to 47.9 in September ‌from 48.1 in August, with firms citing the war in the Middle East as a ​drag on new orders and output.

Operating ​conditions have now moderated on a monthly ⁠basis for 2-1/2 years, with input ​cost inflation reaching a four-month high in ​September as fuel, oil and transportation costs rose, tied to the Middle East conflict.

Softer demand conditions ​led to a further slowdown in ​new orders in September. New export orders also eased ‌as ⁠international demand remained muted.

Uncertainty around geopolitical conditions ​put the handbrake on growth in ​the ⁠sector but the average PMI for Q3 was slightly higher than in Q2, ⁠suggesting "some ​tentative signs of recovery," said ​Andrew Harker, economics director at S&P Global Market Intelligence.