Global Economy Grinds to a Halt as Iran Conflict Continues

The global economy is facing new challenges as factory surveys for July 2026 show weaker demand and higher input costs across multiple regions.

Turkey's manufacturing PMI dropped to 47.1 in June from 49.8 in May, crossing below the 50-point threshold that separates expansion from contraction.

The US manufacturing PMI hit a four-year high of 54% in May 2026, but even at this level, 42% of US manufacturer survey comments mentioned the Iran conflict directly, citing oil price volatility and supply continuity as concerns.

The breakdown of a mid-July ceasefire has removed any hope for an immediate resolution to the situation, with the war's economic footprint still being felt globally.