ICI Released June 2025 Türkiye Manufacturing PMI and Türkiye Sector PMI Report

• 01.07.2025
• News

Istanbul Chamber of Industry Türkiye Manufacturing PMI dropped to 46.7 in June from 47.2 in May, the lowest in eight months. Business conditions have moderated in each month since April 2024. Demand weakness meant that new orders moderated again in June, extending the current sequence which began two years previously. New export orders also eased. In turn, staffing numbers and purchasing activity were also reduced to larger extents in June. 

According to the Istanbul Chamber of Industry Türkiye Sector PMI report, output volume decreased in all 10 sectors monitored under the survey. Machinery and metal products bucked the trend seen in other sectors, recording a very limited increase in new orders. The number of sectors reporting an improvement in new export orders rose to four, with the sharpest increase in the machinery and metal products sector. In June, only two of the 10 sectors saw an increase in job creation: base metal industry and electrical and electronic products. All sectors except textile raised their product prices. However, inflation dropped in most sectors compared to May. 

Istanbul Chamber of Industry (ICI) released the June 2025 results of Türkiye Manufacturing PMI (Purchasing Managers’ Index) survey, which is recognized as the fastest and reliable indicator of the manufacturing industry’s performance in the economic growth. According to the results of the survey where any figure greater than 50.0 indicates overall improvement of the sector, the headline PMI dropped to 46.7 in June from 47.2 in May. The reading was the lowest in eight months. Business conditions have moderated in each month since April 2024. Demand weakness meant that new orders moderated again in June, extending the current sequence which began two years previously. New export orders also eased. In both cases, rates of slowdown were the most pronounced in three months. 

A lack of new orders meant that manufacturers scaled back output at the end of the second quarter. Moreover, the pace of moderation was the most pronounced since last October. In turn, staffing numberst and purchasing activity were also reduced to larger extents in June. The pace at which employment was scaled back quickened to the fastest in nine months, while purchasing activity eased to the largest extent since September 2024. Stocks of purchases also decreased, but stocks of finished goods rose for the first time in three months as sales reductions meant that finished goods were often left in stock. The rate of input cost inflation quickened slightly in June, with input prices rising sharply amid currency weakness and the inflationary impact of the situation in Iran. On the other hand, output prices increased at a slower pace, and one that was the weakest in 2025 so far. While some firms raised charges in response to higher input costs, pricing power was limited by demand weakness. Suppliers' lead times lengthened for the first time in four months, with respondents often linking delivery delays to shortages of raw materials.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing PMI survey data, Andrew Harker, Economics Director at S&P Global Market Intelligence, said: 

"The struggles continued for Turkish manufacturing firms in June, with latest PMI data pointing to an increasingly challenging demand environment. As such, firms looked to scale back operations and moderated output to the largest degree since October last year. Despite this, firms still had an excess of stocks of finished goods, which increased for the first time in three months. The latest PMI reading completes a difficult first half of the year, with hopes that better will come over the second half of 2025.”

Sector PMI shows declining output in all 10 sectors in June

According to the Istanbul Chamber of Industry Türkiye Sector PMI June 2025 report, output volume declined in all 10 sectors monitored under the survey for the first time in the last nine months. Output started to decline again in the clothing and leather products and non-metallic mineral products sectors. As for the new orders, a slightly more positive picture emerged. Machinery and metal products bucked the trend seen in other sectors, recording a very limited increase in new orders. New order volumes increased in only one of the 10 sectors, while the number of sectors reporting an improvement in new export orders rose to four. The sharpest increase was seen in the machinery and metal products sector with a highest growth rate in the last year.

In June, only two of the 10 sectors saw an increase in staffing numbers. These sectors were the base metal industry and electrical and electronic products. On the other hand, the number of staff in machinery and metal products declined at the highest rate since May 2020. Machinery and metal products also saw the sharpest increase in input prices. Price increases in this sector reached their highest in the last 15 months. Increases in input costs were generally significant, but the lowest increase was recorded in clothing and leather products. All sectors except textiles raised their product prices. However, inflation dropped in most sectors compared to May. The fastest increase was in base metals sector. Suppliers' lead times shortened in seven out of ten sectors in May, but this number fell to two in June, signaling disruptions in supply chains. 

 You can find attached the Istanbul Chamber of Industry Türkiye Manufacturing PMI and Sector PMI June 2025 reports.