Slowdown in manufacturing continues

ISTANBUL

The slowdown in the Turkish manufacturing sector became more entrenched in November, a survey conducted jointly by the Istanbul Chamber of Industry (İSO) and S&P Global has shown.

The headline PMI dropped to 47.2 in November from 48.4 in October, below the 50 no-change mark for the fifth consecutive month and pointing to a solid moderation in business conditions.

“In fact, the latest slowdown was the most marked for a year,” said the survey.

Output, new orders, purchasing and employment all moderated to larger extents than in October, meanwhile, currency weakness again caused increases in input costs and output prices, it added.

Production was scaled back to the largest degree for a year as manufacturers responded to demand weakness, according to the survey.

Respondents to the survey stressed that conflicts around the world and difficulties securing raw materials also contributed to the moderation of production.

The rate of input cost inflation eased to a 6-month low in November but remained marked amid widespread reports that currency weakness had pushed up prices for materials, the survey said.

"The latest Türkiye manufacturing PMI data makes for concerning reading as it shows the slowdown in the sector gathering momentum as the year draws to a close,” commented Andrew Harker, economics director at S&P Global Market Intelligence.

Widespread demand weakness, both at home and abroad, is making it increasingly difficult for firms to secure new business and leading to the scaling back of output, employment and purchasing, Harker said.