Manufacturing sector in Türkiye neared stabilization midway through the second quarter, as output returned to growth in May and export orders rose for the first ​time in 21 months, a closely-watched business survey showed on Monday.

The ‌Istanbul Chamber of Industry (ISO) Türkiye Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49.8 in May from 45.7 in April, a survey by ​S&P Global showed. The 50-mark separates growth from contraction.

The May ​reading was the highest since March 2024.

"The Turkish manufacturing ⁠sector moved in a more positive direction in May as renewed ​growth of exports helped to support a slight rise in production," ​said Andrew Harker, economics director at S&P Global Market Intelligence.

Production increased in May after a sharp slowdown in April. The survey said panelists reported signs of improving demand, particularly internationally.

New export orders rose, ending a 20-month ​run of decline, while total new business still eased slightly as ​firms cited uncertainty, higher prices and the war in the Middle East.

Where new orders moderated, the survey said, panelists linked this to uncertainty, higher prices and the Iran war.

Employment fell ‌again, ⁠but at the slowest pace so far in 2026.

Firms also increased purchasing activity for the first time in just over two years, partly to build safety stocks as prices rose and supply ​chains were disrupted.

"Despite this, stocks of purchases continued to soften, albeit at a much slower pace than in April," the survey said.

Input costs ​continued to ⁠rise sharply, with firms citing higher fuel, oil, metals and transportation prices, though both input cost and ​output price inflation eased.

Suppliers' delivery times lengthened ​for a ⁠seventh consecutive month.

"There is some question therefore as to whether the expansions seen in May can be sustained given ongoing sharp rises in ⁠input ​costs and supply-chain delays," Harker said.

"Much will likely ​depend on whether total new orders can join exports in growth territory in the ​months ahead."