Economics

Turkish Manufacturers in Worst Funk Since First Wave of Pandemic

  • Purchasing managers’ index hit its lowest level since May 2020
  • S&P Global sees signs ‘the inflationary headwind has peaked’
An employee works on a production line in Manisa, Turkey.Photographer: Chris McGrath/Getty Images
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Business conditions among Turkish manufacturers deteriorated the most since May 2020 after output and new orders suffered their worst performance since the first wave of the coronavirus pandemic.

Weakness in demand compounded a surge in input prices from declines in the lira for an industry that now accounts for 95% of Turkey’s total exports. A measure of Turkish manufacturing activity compiled by the Istanbul Chamber of Industry and S&P Global droppedBloomberg Terminal to 46.9 in July, the fifth straight month it’s been below the 50-mark that separates expansion from contraction.