ISO MANUFACTURING PMI FALLS IN OCTOBER
The latest PMI survey data from Istanbul Chamber of Industry and IHS Markit signaled a slight slowdown in the Turkish manufacturing sector during October, with new orders softening after an expansion in September. On a positive note, employment increased for the second month running. Meanwhile, the rate of input cost inflation remained relatively muted and firms lowered their output prices again.
The headline Istanbul Chamber of Industry Turkey Manufacturing PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. Any figure greater than 50.0 indicates overall improvement of the sector.
After posting at 50.0 in September, the headline PMI ticked down to 49.0 in October. This signaled a slight moderation in the health of the Turkish manufacturing sector.
New orders softened in October, reversing the growth seen in September. Panelists cited demand weakness in both domestic and export markets. Firms responded to challenging demand conditions by scaling back production slightly. Backlogs of work continued to moderate, meanwhile, albeit to the least extent for 20 months.