Manufacturing PMI at highest in three months

ISTANBUL

Although the headline Istanbul Chamber of Industry Türkiye Manufacturing PMI remained below the 50 no-change mark again in August at 48.1, the latest reading was up from July’s 47.7 and the highest in three months.

The PMI signaled a modest easing in business conditions during the month, said the survey.

The war in the Middle East weighed on manufacturing sector performance again in August, causing demand to remain muted amid widespread uncertainty, it added.

As a result, both total new orders and new export business eased, albeit in both cases to smaller degrees than in July, it noted.

“In turn, manufacturers scaled back production for the third consecutive month. The latest slowdown was modest and broadly in line with that registered in the previous survey period,” it said.

The rate of input cost inflation quickened to a three-month high amid reports of higher costs for fuel and oil, plus rising raw material prices, according to the survey.

The war in the Middle East continues to cast a shadow over the Turkish manufacturing sector, limiting demand and adding a layer of uncertainty to business decisions, commented, Andrew Harker, economics director at S&P Global Market Intelligence.

Despite this, firms have been able to limit the impact, with new orders easing to the smallest degree in three months during August, he said.

“This provides some hope that the sector can move up a gear in the months ahead, but much still depends on events in the Middle East and how they play out,” Harker added.