Signs of improvement in Turkish manufacturing in May are reflected in the Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI), published on May 1.

Posted at 49.8 following a reading of 45.7 in April, the PMI was at its highest since March 2024, signalling a near-stabilisation of business conditions, said survey publisher S&P Global. On the scale, readings above 50.0 indicate an expansion.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "The Turkish manufacturing sector moved in a more positive direction in May as renewed growth of exports helped to support a slight rise in production. Purchasing activity was also up, although at least some of this increase was due to safety stock building amid disruption caused by the war in the Middle East.

“There is some question therefore as to whether the expansions seen in May can be sustained given ongoing sharp rises in input costs and supply-chain delays. Much will likely depend on whether total new orders can join exports in growth territory in the months ahead."

The PMI survey also found that in May input costs continued to rise sharply and suppliers' delivery times lengthened.

“Panellists reported signs of improving demand, particularly internationally. In fact, new export orders increased in May, ending a 20-month sequence of moderation,” said S&P.

It added: “Where new orders moderated, panellists linked this to uncertainty, higher prices and the war in the Middle East.”