The manufacturing industry purchasing managers index (PMI) decreased to 45.7 in April, indicating that the effects of the conflicts in the Middle East were strengthening, and pointed out that the manufacturing industry recorded the most significant contraction since September 2024.
According to the survey, new orders fell to a six-month low, while production and employment also decreased.
The index, compiled by S&P Global for the Istanbul Chamber of Industry (ISO), remained below the 50 level that separates contraction and growth for the 25th consecutive month, with 45.7 in April, after hitting a five-month low with 47.9 in March.
While the most significant contraction in production since the coronavirus outbreak was recorded, the companies participating in the survey stated that the recent slowdown was linked to the conflicts in the Middle East.
While the production sub-index decreased from 47.7 to 42.8, the employment sub-index decreased from 46.9 to 46.3 in April.
The slowdown in new orders from abroad also became more evident compared to March.
Manufacturers continued to reduce employment, purchasing activity and inventory levels in the face of a slowdown in new orders. The most significant decrease in stocks in the last six years was recorded.
While the weakening in new orders partly reflects pressures from rising inflation, inflation in input costs accelerated for the fifth consecutive month, reaching the highest level since January 2024. Participants pointed out the increases in fuel and oil costs caused by conflicts in the Middle East.
The new orders sub-index decreased from 46.9 to 43.9 in April, and the new export orders sub-index decreased from 47.1 to 43.8.
Evaluating the Manufacturing PMI data, S&P Global Economy Director Andrew Harker said, “In April, the impact of the war in the Middle East on the Turkish manufacturing sector became even more intense. Companies reported that demand had weakened, inflation had increased and there were disruptions in the supply chain.”
Stating that uncertainties about how long the effects of the conflict will last have led manufacturers to act cautiously, Harker said that this situation has led to a decrease in employment, purchasing and stocks.
