Business conditions remained challenging in the Turkish manufacturing sector in February, according to the Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Manufacturing Index (PMI) for the month published on March 3.

Muted market demand fed through to slower new orders, output and employment, said survey compiler S&P Global.

The headline PMI edged up to 48.3 in February from 48.0 in January (any figure below 50.0 represents a contraction).

Meanwhile, said S&P, both input cost and output price inflation rates quickened from the start of the year.

The health of Turkey’s manufacturing sector has regressed continuously since April last year.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “The Turkish manufacturing sector continued to struggle to gain momentum in the opening part of 2025, with firms seeing further challenges in the securing of new business in February.

“With this in mind, manufacturers were reluctant to take on staff or invest in buying in new materials. Headwinds around inflation also continued to build, with both input costs and output prices rising more quickly. This could potentially make it more difficult for firms to secure new business in the near-term.”

The PMI data also showed that in Turkish manufacturing:

New business eased for the 20th consecutive month and at a solid pace, albeit with the rate of moderation easing from January.

Weakness was seen in new export orders, which slowed to the greatest extent since last October.

The softening of new orders was matched by a moderation in output, the eleventh in as many months.

The pace at which production eased was modest and slower than in the previous month.

A lack of new orders led manufacturers to scale back their employment and purchasing activity during February. In both cases, rates of moderation were more pronounced than in January.

The latest rise in input prices was sharp, and linked by panellists to higher costs for raw materials and staff, as well as the inflationary impact of currency weakness.

Output prices also rose at a quicker pace, with the rate of inflation at a five-month high.

Suppliers' delivery times lengthened marginally again in February. Delays were linked to price hikes and geopolitical issues.