Turkish manufacturers faced a challenging end to H1 2026 as the Iran war impact continued to disrupt demand and supply, S&P Global said.
New orders eased, purchasing activity moderated, input prices rose sharply, the rate of output price inflation softened, and inventories of both purchases and finished goods were scaled back again in June.
Business conditions have now softened in 27 months in a row.
There were some signs of price pressures alleviating, however, with inflation of both input costs and output charges easing for the second month in a row.
The headline Istanbul Chamber of Industry manufacturing purchasing managers’ index (PMI) for the country posted 47.1 in June, down from 49.8 in May, pointing to a solid moderation in the health of the manufacturing sector during the month.
Business conditions have now softened in 27 successive months.
After output had risen slightly in May, a renewed moderation was signalled in June. Respondents linked slower production to a range of factors, including market uncertainty caused by the war in the Middle East, a further softening of new orders and higher prices.
The moderation of new orders was solid as new export business saw a renewed slowdown following an expansion in May.
A moderation of purchasing activity was also signalled in June following an increase in May as companies responded to softer new orders.
Meanwhile, employment continued to be scaled back.
The rate of input cost inflation continued to ease from April’s recent peak and was the slowest since last November.
Input prices rose sharply again as the war in the Middle East acted to push up costs for oil and other raw materials.
Similarly, the rate of output price inflation softened and was the weakest in the year-to-date.
The conflict also continued to impact the ability of firms to secure raw materials, with suppliers’ delivery times lengthening again in June.
Inventories of both purchases and finished goods were scaled back again in June, largely as a result of muted demand conditions.
Fibre2Fashion News Desk (DS)
