Turkey's manufacturing nears stabilisation, PMI hits highest since March 2024

ISTANBUL, June 1 (Reuters) - Turkey's ‌manufacturing sector neared ​stabilisation ​in May as output returned to growth and export orders rose for the first time in 21 months, ‌a business survey showed on Monday.

The Istanbul Chamber of Industry ⁠Turkey Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49.8 in ‌May from 45.7 in ‌April, a survey by S&P Global showed. The 50-mark separates growth from contraction.

The May reading was the highest since March 2024.

"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," said Andrew Harker, Economics Director at S&P Global Market Intelligence.

Production increased in ​May after a sharp slowdown in April. New export orders rose, ending a 20-month run of decline, while ​total new business still eased slightly as ‌firms cited uncertainty, higher prices and the war in the Middle East.

Employment fell again, but at the ⁠slowest pace so far in 2026. Firms also increased purchasing activity for the first time in just over two years, partly to build safety ⁠stocks as prices rose and supply chains were disrupted.

Input costs continued to rise ​sharply, with firms citing higher fuel, oil, metals and transportation prices, though both input cost and output price inflation eased. Suppliers' delivery times lengthened for a ‌seventh consecutive month.

"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," Harker also said.

(Reporting by Ezgi Erkoyun; Editing by ‌Toby Chopra)

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