Manufacturing PMI slips to 48.4

ISTANBUL

The headline PMI declined from 49.6 in September to 48.4 in October, posting below the 50 no-change mark for the fourth consecutive month, a survey conducted jointly by the Istanbul Chamber of Industry (İSO) and S&P Global has shown.

Turkish manufacturers endured a challenging demand environment at the start of the fourth quarter of the year, with new orders increasingly difficult to secure, the report said.

“As a result, production was scaled back, and firms also acted to lower their employment and purchasing activity.”

There was some respite in terms of inflationary pressures, however, with both input costs and selling prices rising at softer rates than in September, it added.

Widespread demand weakness, both domestically and internationally, was signaled by manufacturers in October.

Total new orders and new export business moderated over the course of the month, while total new business slowed to the largest degree since last November, it said.

October data signaled a renewed reduction in employment, thereby ending a five-month sequence of job creation, according to the survey.

Inflationary pressures continued to wane at the start of the final quarter of the year, it added.

“Rates of increase in input costs and output prices each eased for the third successive month. Where prices did rise, this was often linked to currency weakness,” the report said.

There was some further respite in terms of inflation, however, which may provide some grounds for optimism that an improved demand environment can become established soon, commented Andrew Harker, economics director at S&P Global Market Intelligence.