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ISO Turkey Manufacturing PMI data, considered the fastest and most reliable reference in manufacturing industry performance and the leading indicator of economic growth, was announced. 

According to the survey results, where all figures measured above the threshold value of 50.0 indicate an improvement in the sector, the headline PMI remained below the threshold value of 50.0 for the second consecutive month. 

The latest data indicated that although moderate, the slowdown in the sector's operating conditions has been the most significant since early 2024.

According to ISO data, the loss of momentum in the sector was reflected in many indicators in the May survey. Firms reported a sharp decline in new orders in particular, which was at the highest rate since January. 

Survey participants stated that the slowdown in orders was largely due to difficult demand conditions and that high prices negatively affected some customers. These factors also contributed to the slowdown in new export orders for the 11th consecutive month.

The most prominent positive development in the survey was the broad-based easing in cost pressures. Input costs increased faster compared to April in only one of the ten sectors, while a similar pattern was observed in selling prices.

External demand, on the other hand, diverged positively from the overall picture in most sectors. Six out of ten monitored sectors increased new export orders in May. Production increased in only three of the ten sectors in May. Nevertheless, this represented an improvement in April, when only two sectors increased their production. The fastest increase in production was recorded in machinery and metal products, while the most significant slowdown was recorded in land and watercraft.

As for employment, a different picture emerged across sectors. While five sectors, especially machinery and metal products, increased their employment, the most significant decrease was recorded in the electrical and electronic products sector.

Turkey Sectoral PMI report showed that demand conditions remained generally challenging in May, and new orders slowed down in most sectors. Accordingly, production also lost momentum in many sectors, while employment showed more complex trends. 

The slowdown in new orders led manufacturers to reduce production for the second consecutive month, the largest decline since the beginning of 2024. Some survey participants pointed out that capacity constraints limited their ability to increase production. 

The employment volume in the sector contracted for the fourth consecutive month, with some firms indicating that they tend not to hire new employees to replace those who left due to decreased workloads. Purchasing activities, input stocks and final product stocks decreased in April.

Albania News Agency


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