The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 44.3 points in October this year, up from September’s 42.7 points. Any figure greater than 50 indicates an overall improvement of the sector. The PMI increased for the first time since July.
The latest PMI data signalled that the slowdown in the operating conditions in the Turkish manufacturing sector continued during October, while it was less marked than that seen in the previous month. Both input costs and output price inflation showed a significant decrease on month-on-month basis due to a stabilisation of the lira exchange rate. The rate of output price inflation increased at the weakest pace since March. Output and new orders continued to slow in October due to the challenging market conditions but the slowdown in production, new orders and employment moderated to lesser extents in the month in question.
“Latest PMI data suggest that the worst of the current difficulties may have been seen in September, with key indicators such as output, new orders and employment all moderating at weaker rates in October amid a slowdown in inflation. That said, market conditions remained challenging for firms and further improvements will be needed in coming months if we are to see a return to growth,” stated Andrew Harker, associate director at IHS Markit.