Türkiye PMI Manufacturing Index: March sees PMI reading of 47.3

The end of the first quarter of 2025 signaled a further moderation in the Turkish manufacturing sector.

Output, new orders, employment and purchasing all eased in March, although there was a stabilization of inventory holdings and suppliers' delivery times shortened for the first time in six months. Meanwhile, rates of both input cost and output price inflation eased from those seen in February. The headline Istanbul Chamber of Industry Türkiye Manufacturing PMI® is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50.0 indicates overall improvement of the sector. The headline PMI posted below the 50.0 no-change mark again in March, extending the current sequence of moderating business conditions to one year. At 47.3, the PMI was down from 48.3 in February and the lowest since October last year. New orders slowed again in March, the twenty first consecutive month in which that has been the case. Moreover, the latest moderation was the most pronounced since last October. New export orders also eased, and at the fastest pace since November 2022. Challenging market conditions were said to be behind the latest slowdown in new orders, and also contributed to a scaling back of manufacturing production in March. Output has now moderated on a monthly basis throughout the past year, with the latest softening the sharpest since October 2024. Manufacturers responded to slower new orders by scaling back employment, the fourth month running in which this has been the case. The reduction in staffing levels was only slight, however, and the weakest since December. Purchasing activity also eased in March, while stocks of both inputs and finished products were broadly unchanged. Stability in post-production inventories ended a ten-month sequence of depletion. A lack of demand for inputs meant that suppliers were able to speed up deliveries. Lead times shortened for the first time in six months, and to the greatest extent since December 2022. Input costs continued to increase sharply in March, largely as a result of currency weakness. The pace of inflation eased, however, and was at a three-month low. Output prices also rose at a slower rate, and one that was the softest in the year-to-date. Comment Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing PMI survey data, Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "Challenging market conditions both at home and abroad meant for further moderations in output and new orders in March as Turkish firms struggled to secure business. There was a lack of pressure on capacity across the sector, with suppliers able to speed up deliveries to the greatest extent since December 2022. Inflationary pressures remained marked, however, as firms had to contend with the ongoing impacts of currency weakness.