Turkish manufacturing sector continues to shrink, data shows
ISTANBULTurkey’s manufacturing sector saw another difficult month in August, continuing to slow down sharply for the sixth month in a row, as output and new orders declined in the wake of the failed military coup and ongoing terror attacks, while new export businesses and employment both increased for the first time in months.
The Turkish Purchasing Managers’ Index (PMI), compiled by HIS Markit and the Istanbul Chamber of Industry, fell to 47 last month from 47.6 in July, according to the data, which was released on Sept. 1.
Any figure greater than 50 indicates an overall improvement in the sector.
This was the worst slowdown since early 2009 as production and new orders, two indicators of five key PMI indicators, decreased, although the level of new export business rose for the first time in 2016.
“Turkey’s manufacturing sector contracted in terms of output and new orders in August. More positively, new export business and employment both increased, and input prices rose at the slowest rate in four months,” Trevor Balchin, a senior economist at IHS Markit, said in a note.
The volume of new export business received by Turkish manufacturers rose in August. This was the first increase signaled in 2016 so far, with a number of firms reporting new customers, according to the data.
The seasonally adjusted Employment Index also rose above the no-change mark of 50 in August, indicating a growth in the workforce in the Turkish manufacturing sector.