Turkish manufacturing PMI falls in October

ISTANBUL

Türkiye’s manufacturing PMI fell to 47.3 in October from 47.9 in September, marking the sharpest deterioration since June and extending the current period of weakening business conditions to 31 consecutive months, according to data published by the Istanbul Chamber of Industry (İSO) and S&P Global on Nov. 2.

Any figure greater than 50 indicates overall improvement of the sector.

According to survey data, challenging market conditions and inflationary pressures meant that manufacturers saw a slowdown in new orders again in October, extending the sequence which began in July 2023.

“Moreover, the rate of moderation was the fastest in three months. New export orders also continued to slow,” said the survey.

Employment also continued to ease amid lower workloads and staff resignations, but the slowdown was only modest and the least marked since June, it noted.

A range of factors combined to result in a further sharp monthly rise in input costs in the Turkish manufacturing sector, including higher oil prices, rising raw material costs and unfavorable exchange rate movements, it added. “The rate of inflation eased from September, but it remained sharp and was faster than the average over the year so far,” it said.

“The economic environment facing Turkish manufacturers is such that they continued to find it difficult to generate growth as the final quarter of the year began,” commented Andrew Harker, economics director at S&P Global Market Intelligence,

He noted that employment declined only modestly, which could help limit the extent of future output reductions.