Manufacturing activity loses momentum in September: Survey

ISTANBUL

The Istanbul Chamber of Industry’s (İSO) headline Türkiye Manufacturing PMI dropped to 44.3 in September from 47.8 in August.

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

The latest reading signaled a marked slowdown in the sector and one that was the most pronounced since May 2020, the survey said.

Output, new orders, employment and purchasing all softened to larger degrees than in the previous survey period, it noted.

There were widespread reports of demand weakness in September, leading to the sharpest slowdown in new orders in almost four and a half years.

Subdued demand in international markets was also signaled by a renewed moderation in new export orders.

Production eased in response to muted new order inflows, extending the current sequence of moderation to six months.

Moreover, output was scaled back to the largest extent since May 2020.

Currency weakness and higher raw material prices led to a further increase in input costs during September, according to the survey.

"The latest PMI data paint a worrying picture for Turkish manufacturers as the sector moved deeper into its period of moderation at the end of the third quarter,” commented Andrew Harker, economics director at S&P Global Market Intelligence.

"While inflationary pressures aren't currently as severe as they have been in recent years, the still-marked increases in prices won't be helping to improve the demand environment,” he said.