Türkiye's manufacturing sector contracted again in August as the war in the Middle East kept demand muted and led firms to cut output, jobs and purchasing, a business survey showed on Tuesday. The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 48.1 in August from 47.7 in July. The 50 mark separates growth from contraction. Although the headline PMI remained below the no-change mark again in August, it hit the highest in three months, the survey said, signaling a modest easing in business conditions. "The war in the Middle East continues to cast a shadow over the Turkish manufacturing sector ... Despite this, firms have been able to limit the impact, with new orders easing to the smallest degree in three months during August," said Andrew Harker, economics director at S&P Global Market Intelligence. Total new orders and new export business both fell again, though the declines were softer than in July as manufacturers continued to report muted demand and widespread uncertainty. Production decreased for a third consecutive month, while companies cut employment and purchasing activity faster than in July. Firms also drew on existing inventories, reducing stocks of purchases and finished goods. Input price inflation climbed to a three-month high on higher fuel, oil and raw material prices. Manufacturers raised their selling prices at a faster pace, too, while suppliers' delivery times lengthened amid war-related disruption.
