Türkiye’s manufacturing sector faces further slowdown in March

By Tuba Ongun

Türkiye’s manufacturing sector saw a further slowdown in March, with declines in output, new orders, employment, and purchasing while inventory levels stabilized, and supplier delivery times improved for the first time in six months.

According to data released by S&P Global on Wednesday, Türkiye's manufacturing purchasing managers' index (PMI) dropped to 47.3 in March, from 48.3 in February. This marked the lowest reading since October 2024 and extended the streak of weakening business conditions to a year.

New orders dropped for the 21st consecutive month, with the sharpest decline since last October.

Export demand also weakened, falling at its fastest pace since November 2022. Challenging market conditions contributed to reduced production, marking a full year of monthly output declines.

In response to falling demand, manufacturers scaled back employment for the fourth straight month, although job cuts were minimal. Purchasing activity also eased, while stock levels remained stable for the first time in 10 months.

A drop in demand for raw materials allowed suppliers to speed up deliveries, with lead times improving at their fastest rate since December 2022.

Meanwhile, input costs continued to rise due to currency depreciation, but the rate of inflation slowed to a three-month low. Similarly, output price inflation eased to its slowest pace of 2025 so far.