Turkish manufacturing activity contracted at its fastest pace in five months in March as the war in the Middle East lifted costs, disrupted supply chains and weakened demand, a business survey showed on Wednesday.
The Istanbul Chamber of Industry Turkish Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 47.9 in March from 49.3 in February, the survey showed.
The 50-mark separates growth from contraction.
"The Turkish manufacturing sector suffered something of a setback in March, after conditions had looked to be on the path to becoming more favorable in February," said Andrew Harker, economics director at S&P Global Market Intelligence.
New orders fell for a 33rd straight month and at the sharpest pace since last November, while export demand also weakened more quickly. Output was scaled back to the greatest extent since last November, S&P Global said.
Price pressures intensified as firms linked higher freight, fuel, oil and raw material costs to the Middle East conflict. Input costs rose at the fastest rate since April 2024, while output price inflation hit a 25-month high.
Supply-chain strains also worsened. Suppliers' delivery times lengthened to the largest extent since August 2024, while manufacturers cut employment at the sharpest pace in six months and reduced purchasing activity and inventories.
The survey said manufacturing conditions have now weakened in every month over the past two years. Business confidence fell to a five-month low in March, although firms still expected output to rise over the coming year.
