Turkey’s manufacturing sector contracted in June as the war in the Middle East disrupted demand and supply, a business survey showed on Wednesday.

Manufacturing PMI Falls

The Istanbul Chamber of Industry’s Turkey Manufacturing Purchasing Managers’ Index, compiled by S&P Global, fell to 47.1 in June from 49.8 in May. The 50-mark separates growth from contraction.

Output returned to decline after rising slightly in May, with firms citing market uncertainty linked to the conflict in the Middle East, softer new orders and higher prices.

Demand weakened further, with total new orders posting a solid decline and new export business also falling again after expanding in May.

Companies also cut purchasing activity, while employment continued to be scaled back. Suppliers’ delivery times lengthened again, although the deterioration was the least marked since February.

There were some signs of easing price pressures. Input cost inflation slowed for a second straight month to its weakest since November, while output price inflation eased to its lowest level so far this year.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.