Although Turkey’s manufacturing industry purchasing managers index (PMI) rose to 47.4 in August, he pointed out that the contraction in the sector continues.
While the contraction in production eased, employment continued to increase. The increase in input costs and ex-factory prices continued to decline, recording the lowest levels in 31 months and 18 months, respectively.
The manufacturing PMI, compiled by S&P Global for the Istanbul Chamber of Industry (ISO), rose to 47.4 in August after taking the value of 46.9 in July, showing that the sector continued to contract in the sixth month. Values below 50 in PMI indicate contraction.
New orders contracted more sharply in August compared to the previous month. New orders contracted at the sharpest pace since May 2020, when the coronavirus outbreak dominated the industry.
The production sub-index rose to 45.9 from 43.3 in August, while the new orders sub-index fell to 42.8 from 43.6.
Noting that there was a decrease in demand, an increase in prices and a weakening in the global economy, the participants stated that new export orders also decreased due to this, while some drew attention to the decrease in demand from Europe.
The new export orders sub-index fell to 48.5 from 49.9 in August.
On the other hand, while the increase in employment continued, the increase in new hires reached the highest level in three months.
Although price pressures continue to be influential on demand and production volume, signs of easing inflation have increased.
raw materials, transportation and energy The increase in costs, the increase in the minimum wage and the depreciation of the TL contributed to the increase in both input costs and sales prices.
Evaluating the PMI data, Andrew Harker, Director of Global Economy at S&P, said, “While the contraction in production lost some momentum in August, new orders are expected to increase. coronavirus The trend in new orders has become more striking as the epidemic has recorded a rapid decline since the onset of the epidemic. “Market conditions are clearly challenging due to the weakness in both the domestic and export markets,” he said.