Inflation rates continued to soften, with firms increasing their own selling prices to the least extent in four-and-a-half years.

The headline Istanbul Chamber of Industry Turkiye manufacturing purchasing managers’ index (PMI), a composite single-figure indicator of manufacturing performance, was at 47.9 in June from 48.4 in May and below the 50 no-change mark for the third consecutive month.

The index signalled a modest easing of business conditions in the Turkish manufacturing sector.

Output moderated for the third month running and at a solid pace, albeit one that was slightly softer than in the previous month, a release from S&P Global said.

The slowdown in new orders meanwhile was greater than that seen in May amid reports of weakness in both domestic and export markets. The moderation in new business from abroad was less marked than for total new orders.

Lower workloads meant that manufacturers scaled back their employment and purchasing activity again in June, and at sharper rates than in the previous survey period. In particular, workforce numbers eased to the largest degree since October 2022.

For the fifth month running, the rate of input cost inflation slowed in June, with the latest rise in input prices the weakest since May 2023.

The pace at which firms raised their own selling prices also softened and was the slowest in four-and-a-half years amid weaker cost inflation and subdued client demand.

Finally, delays due to sea transportation issues, particularly as a result of disruption in the Red Sea, caused a further lengthening of suppliers' delivery times.

Fibre2Fashion News Desk (DS)