FX.co ★ Turkey Manufacturing Sector Contraction Deepens

The Istanbul Chamber of Industry reported that Turkey's Manufacturing PMI slightly decreased to 47.2 in May 2025, a marginal dip from 47.3 in April, marking the fourteenth month of contraction in a row. This figure represents the most significant decline since October 2024. New orders fell for the 23rd consecutive month and did so at a considerable rate. Additionally, there was a noticeable drop in both employment and purchasing activities compared to the previous month. Inventories of inputs and finished goods were reduced due to weakening demand conditions. On the pricing front, input cost inflation remained high, primarily driven by ongoing currency depreciation, although it showed a slight decline from April’s peak of the past year. Meanwhile, selling price inflation decreased to its lowest point in 2025, as firms faced limited pricing power amid subdued market conditions.