Turkey’s PMI index points to further slowdown in manufacturing
New orders and output in Turkey’s manufacturing sector have continued to slow down due to “hard activity conditions,” data from a closely-watched survey revealed on Oct. 1.
Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector contracted for the sixth consecutive month in September, dropping to 42.7 points.
The index, conducted by the Istanbul Chamber of Industry (İSO) in cooperation with IHS Markit, had been at 46.4 in September and at 49 a month earlier.
A reading greater than 50 indicates the sector is growing, while a reading below 50 signals a contraction.
“The current hard activity conditions affected the most recent state of the index. Both output and new orders continued to slow, with companies scaling back employment and purchasing activity accordingly,” the İSO said in a statement.
It said inflationary pressures remained substantial, reflecting a weaker Turkish Lira.
“Lira weakness again contributed to inflationary pressures, while difficulties in sourcing materials were reported,” it added.
The PMI for Istanbul, Turkey’s main economic hub, also decreased for the second month to 43.5, according to the statement.