The pace of decline in Turkish manufacturing eased in October but tough demand conditions meant companies were still faced with further slowdowns in new orders and exports, according to the headline Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI).
The headline indicator posted 45.8 in October, up from 44.3 in September but still below the 50.0 no-change mark. Sub-50.0 figures have been recorded for every month since April.
Andrew Harker, economics director at S&P Global Market Intelligence, said: “Although rates of moderation in a range of key variables such as output, new orders and employment softened in October, the latest data showed that the Turkish manufacturing sector remained under pressure due to challenging demand conditions.
“Notably, firms scaled back their holdings of inputs to the largest extent in almost four-and-a-half years.
“On a more positive note, inflationary pressures eased again, at least reducing the impact of this particular headwind to growth.”
Manufacturers in October scaled back production for the seventh month running, while also putting the brake on hiring and purchasing activity in response to muted new orders.
Input costs rose markedly, but at the softest pace for almost a year-and-a-half, S&P Global said.
Currency weakness remained a key factor leading to higher costs.
Higher prices for raw materials such as wheat were mentioned by respondents, alongside higher transportation costs, the survey report added.
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