FX.co ★ Turkish Manufacturing Contraction Continues

The Istanbul Chamber of Industry Türkiye Manufacturing PMI remained unchanged at 47.3 in April 2025, marking the 13th month in a row of contraction in the manufacturing sector. Though output, new orders, and exports continued their downward trend, the rate of decline lessened compared to March, suggesting possible early signs of stabilization. Both domestic and international demand remained weak, prompting companies to implement job cuts for the fifth consecutive month and reduce purchasing activity for the 12th month in a row. However, there was a significant improvement in vendor performance, with delivery times decreasing at their fastest rate since December 2022. On the pricing front, input cost inflation climbed to its highest level in a year due to weakened currency and increased raw material expenses, resulting in the steepest rise in selling prices in seven months. Despite ongoing challenges, the easing decline offers hope that the sector might be approaching a more stable footing.