Turkey’s manufacturing index slightly rises in October

ISTANBUL

Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector stood at 44.3 points in October, according to a closely-watched business survey on Nov. 1.

An Istanbul Chamber of Industry PMI Manufacturing Index report conducted in cooperation with IHS Markit showed a 1.6-point month-on-month rise in October pointing to a further easing of the health of the sector.

While the PMI rose for the first time since July, the survey showed that the output, new orders and employment moderated to lesser extents in October.

“Latest PMI data suggests 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,” said IHS Markit Associate Director Andrew Harker, commenting on the Istanbul Chamber of Industry Turkey Manufacturing PMI survey data.

A more stable exchange rate scenario led rates of inflation for both input costs and output prices to slow markedly over the month, the report read.

The survey revealed the latest slowdown was less marked last month compared to September, while output prices have risen at the weakest pace since March.

A stabilization of the Turkish Lira exchange rate helped lead to a marked slowdown in the rate of input cost inflation in October, it added.

The report also noted that new export orders eased to a greater extent for the second month running.

A reading greater than 50 indicates the sector is growing, while a reading below 50 signals a contraction.