A solid slowdown in Turkish manufacturing during July can be seen in the Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI) for the month, released on August 1.

The headline PMI reading fell for the fifth consecutive month in July, posting 47.2 from 47.9 in June (any figure below 50.0 marks a contraction).

Survey compiler and publisher S&P Global said the deterioration was the most pronounced since a similar slowdown seen last November.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "There was little sign of any respite for Turkish manufacturers in July as demand conditions remained challenging.

“If anything, the start of the second half of the year saw an intensification of pressures, with demand, production and employment all moderating to greater degrees than in June. Firms will be hoping for a turnaround in conditions soon."

S&P said the PMI data showed demand weakness led to a further moderation of new orders, with production and employment following suit.

Meanwhile, firms “continued to experience supply-chain delays and saw rates of input cost and output price inflation tick higher from the position in June”, it added.

It added: “In fact, new business moderated to the joint-largest extent in 20 months, equal with that seen in November 2023.

“New export orders also slowed to a greater degree at the start of the third quarter. Muted demand conditions led manufacturers to scale back production for the fourth month running, and at the fastest pace since November 2022.”