ISTANBUL, Aug 3 (Reuters) - Turkey's manufacturing sector contracted again in July as subdued market conditions and weaker domestic and international demand led firms to cut output and jobs, a business survey showed on Monday.
The Istanbul Chamber of Industry Turkey Manufacturing PMI, compiled by S&P Global, rose to 47.7 in July from 47.1 in June, the survey showed. The 50-mark separates growth from contraction.
"The second half of 2026 began in much the same way as the first half ended, with Turkish
manufacturers struggling to generate growth amid a muted demand environment, exacerbated by the war in the Middle East," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
New orders fell markedly again, though the pace of decline eased slightly from June. Firms linked softer demand to subdued market conditions and price pressures, while the war in the Middle East weighed on export demand.
Production declined for a second straight month, although only modestly, the survey showed. Employment also fell, with some firms citing workers resigning from their positions.
Purchasing activity and inventories were reduced in response to muted demand, the survey showed.
Inflation pressures softened further in July. Input costs rose at the slowest pace since November 2025, while the rate of increase in output prices was the weakest so far in 2026.
(Reporting by Ezgi Erkoyun; Editing by Toby Chopra)
