Manufacturing slowdown continues, survey shows

ISTANBUL

Türkiye’s manufacturing sector continued to lose momentum in September, a closely watched survey showed on Oct. 1.

The Istanbul Chamber of Industry Türkiye Manufacturing PMI, compiled by S&P Global, fell to 46.7 from 47.3 in August, signaling a further deterioration in operating conditions, the survey found.

Any reading above 50 indicates overall improvement in the sector, while figures below that threshold point to contraction.

Business conditions have now moderated on a monthly basis for the past year and a half, according to the survey.

Firms once again reported slowdowns in new orders and output and remained reluctant to commit to hiring or fresh input purchases, the survey said. Inflationary pressures strengthened but stayed muted compared with long-run averages, it further noted.

Anecdotal evidence pointed to a persistently challenging demand environment, leading to further declines in new orders and exports and prompting a solid scaling back of production, according to the survey.

Softer inflows of new work allowed manufacturers to reduce backlogs of business to the greatest extent in almost a year, the survey found.

Currency weakness contributed to a rise in input costs in September, with the pace of inflation quickening to a three-month high. The increase was sharp but still below the series average, the survey stated.

“Demand conditions remained challenging in September, with output, employment and purchasing all scaled back as a result,” commented Andrew Harker, economics director at S&P Global Market Intelligence, according to the survey.