PMI eases to 46.9 last month

ISTANBUL

The headline Purchasing Managers’ Index (PMI) fell from 47.4 in August to 46.9 in September, according to a survey conducted jointly by the Istanbul Chamber of Industry (ISO) and S&P Global.

Any figure greater than 50 indicates overall improvement in the sector.

“The latest PMI data signaled a further slowdown in the Turkish manufacturing sector, with output, new orders and purchasing activity all moderating,” said the survey.

Easing workloads meant that firms scaled back employment, ending a period of job creation which began in June 2020. Meanwhile, rates of input cost and output price inflation quickened.

“Anecdotal evidence suggested that fragile demand conditions and inflationary pressures were the main factors leading to slowdowns of both output and new orders during September,” it added.

Rising raw material costs and currency weakness also acted to push up input prices, according to respondents to the survey.

Total new business has now moderated on a monthly basis throughout the past year, with output slowing for the tenth month running. New export orders also softened, with Europe cited as a particular source of demand weakness.

Stocks of finished goods, on the other hand, increased as weakness in new orders left firms with unsold goods.

In fact, the fifth consecutive monthly increase in post-production inventories was the sharpest since February 2012.

Input buying and stocks of purchases also moderated amid waning demand and price considerations.

“With manufacturers sitting on increasingly large, finished goods inventories, the prospects for production over the coming months appear bleak,” commented Andrew Harker, economics director at S&P Global Market Intelligence.