Turkey’s Manufacturing PMI Sees Marginal Improvement in February but Remains in Contraction
manufacturing
The Istanbul Chamber of Industry (ISO) Turkey Manufacturing PMI rose slightly from 48.0 in January to 48.3 in February 2025, yet remained below the critical 50.0 threshold, signaling a continued slowdown in operating conditions. The Turkish manufacturing sector has been in the contraction zone since April 2024.
Sectoral Performance: Decline in Orders Persists
According to the ISO Turkey Sectoral PMI report, nine out of ten monitored sectors experienced a decline in new orders in February. The food products sector was the only exception, marking its fourth month of growth in the last five months.
- The sharpest drops were observed in clothing, leather goods, and textiles.
- On the export front, conditions were slightly better, with three sectors reporting growth in new export orders.
- The strongest export growth was seen in the wood and paper products sector.
Inflation and Employment Challenges
Andrew Harker, Economics Director at S&P Global Market Intelligence, commented:
“The Turkish manufacturing sector continued to struggle to gain momentum in early 2025, with firms facing additional difficulties in securing new orders. As a result, manufacturers were hesitant to expand employment or invest in new materials. Rising input costs and final product prices indicate that inflation-related pressures persist, making it harder for businesses to attract new customers in the near term.”
The continued cost pressures and weak demand suggest that manufacturing firms may face further challenges in regaining growth momentum in the coming months.
