Manufacturing PMI rises in September

ISTANBUL

Business conditions in the Turkish manufacturing sector moved closer to stabilization at the end of the third quarter amid less pronounced slowdowns in output and new orders during September, according to a survey conducted jointly by the Istanbul Chamber of Industry (ISO) and S&P Global.

The headline PMI rose to 49.6 in September from 49 in August and signaled only a marginal moderation in the health of the manufacturing sector, the report said.

Any figure greater than 50.0 indicates overall improvement of the sector.

In fact, the latest reading was indicative of business conditions moving closer to stabilization. The health of the sector has now softened in three successive months,” it said.

Production eased for the third month running, but only marginally and to a lesser extent than in the previous survey period, the survey found.

Both total new orders and new export business eased further in September, but at a softer pace than in August.

A common theme among anecdotal evidence from panelists was that price pressures had restricted customer demand, the report noted.

Input costs continued to rise sharply at the end of the third quarter amid ongoing currency weakness. The rate of inflation was much slower than in August, however, and the weakest overall since May.

Where inputs were purchased, manufacturers were faced with delivery delays, as has been the case throughout 2023 so far. According to respondents, the latest decline in vendor performance was due to high transportation costs and difficulties importing goods.

“Although business conditions remained challenging overall, the latest data provide some hope that a return to growth can be recorded before the end of the year,” said Andrew Harker, economics director at S&P Global Market Intelligence.