Turkish manufacturers remained mired in challenging market conditions in September as the third quarter came to a close, according to the headline Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers Index (PMI) released on October 1.

In the PMI survey, companies often linked difficulties securing new orders and expanding output to effects of the war in the Middle East.

The headline PMI posted 47.9 in September, a very slight improvement on August's reading of 48.1 (only readings above 50.0 signal improved business conditions). Operating conditions for Turkish manufacturers have now moderated on a monthly basis throughout the past two-and-a-half years, said PMI survey publisher S&P Global.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "With the conflict in the Middle East enduring, Turkish manufacturers continued to feel the impacts in September.

“The picture was little-changed throughout the third quarter of the year, with the uncertainty around geopolitical conditions putting the handbrake on growth in the sector. Nonetheless, the average PMI reading for the third quarter was slightly higher than in the second, suggesting some tentative signs of recovery."

The PMI data showed rates of both input cost and output price inflation in Turkish manufacturing hit four-month highs.

Softer demand conditions, in part due to uncertainty caused by the Middle East conflict, led to a further slowdown in new orders in September, with the pace of moderation quickening slightly from August, S&P added.

New export orders eased as international demand remained muted, it added, noting manufacturers scaled back production in September for the fourth month running.

Higher costs for fuel, oil and transportation due to the war, plus increasing raw material prices, drove a sharp hike in input costs.

Delays to sea freight and material shortages contributed to a further lengthening of suppliers' delivery times.