Turkey Manufacturing Sector Continues to Contract for 13th Consecutive Month – April 2025 PMI Holds at 47.3

The Istanbul Chamber of Industry (ICI) has released the April 2025 results of the Turkey Manufacturing PMI (Purchasing Managers’ Index) survey, widely regarded as the most reliable and timely indicator of manufacturing sector performance and a leading gauge of economic growth.

According to the report, the headline Manufacturing PMI remained unchanged at 47.3 in April, indicating that contraction in the sector persisted for the 13th consecutive month. Readings above the threshold value of 50.0 signal expansion in the sector, while those below 50.0 indicate contraction.

Production Declines for 13th Month, Though at a Slower Pace

In line with the headline PMI, output declined once again in April—marking the 13th consecutive month of contraction. Companies cited challenging external market conditions and sluggish demand as key factors. Although the drop in production was still notable, it was milder than in March. The output sub-index rose slightly from 46.7 in March to 47.0 in April.

Similarly, contractions in both total new orders and new export orders eased somewhat at the start of the second quarter. However, demand conditions remained generally weak across both domestic and international markets. In response to softening demand, manufacturers reduced employment and purchasing activity.

As a result, the decline in employment extended to a fifth month, while purchasing activity fell for the 12th consecutive month. The employment sub-index rose from 48.6 in March to 49.3 in April, but remained below the neutral 50.0 mark.

Input Price Inflation Hits 12-Month High

Meanwhile, depreciation of the Turkish lira and rising raw material costs pushed input price inflation to its highest level in a year. These cost pressures also contributed to continued increases in output prices, with final product inflation accelerating to its fastest pace in seven months.

“Impacted by Uncertain Global Economic Conditions”

Commenting on the ICI Turkey Manufacturing PMI survey data, Andrew Harker, Economics Director at S&P Global Market Intelligence, stated:

“Turkish manufacturers faced additional headwinds in April, stemming from an uncertain global economic environment. As a result, slowdowns in new orders, production, and exports continued in the latest PMI survey. However, signs of improvement in some indicators offer hope that the sector may edge closer to expansion territory in the coming months.”

In April, new orders slowed in nine out of ten sectors

The Turkey Sectoral PMI® report for April indicates that the second quarter began with a broad-based slowdown in new orders across most sectors. The only sector to diverge from this trend and remain in expansion territory was food products. Meanwhile, many sectors experienced declines in both production and employment, while cost pressures intensified overall. Supplier delivery times shortened across the majority of sectors covered in the survey.

With the wood and paper products sector returning to contraction in April, new orders declined in nine out of ten sectors tracked by the survey. The only sector showing improvement was food products, although the growth here remained modest. The sharpest drop in new orders was observed in the textile products sector.

Export demand painted a slightly more positive picture, with two sectors reporting increases in new export orders.

As a result, production declined in eight out of ten sectors in April, up from six sectors in the previous month. Mirroring the trend in new orders, the steepest slowdown in output was again seen in textile products. The only sector to record growth in production was food products, while electrical and electronic equipment showed no change compared to the previous month.

Due to declining demand and reduced production needs, firms generally showed a tendency to cut employment at the beginning of the second quarter. Employment levels decreased in eight sectors, led by textile products. However, the chemical, plastic and rubber products sector and the food products sector both recorded increases in employment.

Similarly, purchasing activity slowed across most sectors. The only two sectors that reported an increase in input purchases were food products and electrical and electronic equipment.

The drop in input demand contributed to widespread improvements in supplier delivery times. In April, the only sector that saw a deterioration in supplier performance was land and sea vehicles. The most significant improvement in delivery times was recorded in the textile products sector, while the machinery and metal products sector experienced its strongest improvement on record.

Input costs continued to rise sharply, with inflation increasing in eight out of ten sectors compared to March. The fastest rise in input prices was observed in the land and sea vehicles sector.

In terms of selling prices, the sharpest increase was registered in the wood and paper products sector. On the other hand, textile firms reduced their selling prices for the second consecutive month, a trend that stood out.