Slowdown in Turkish manufacturing became more entrenched in November, PMI shows

Slowdown in Turkish manufacturing became more entrenched in November, PMI shows
/ S&P Global
By bne IntelliNews December 3, 2023

The slowdown in the Turkish manufacturing sector became more entrenched in November, according to the latest Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI) released on December 1.

The headline PMI dropped to 47.2 in November from 48.4 in October, coming in below the 50.0 no-change mark for the fifth consecutive month.

Subdued market conditions both at home and abroad meant that new orders eased again midway through the final quarter of the year, and to the greatest extent since November 2022, said S&P Global. Production was also scaled back to the largest degree for a year as manufacturers responded to demand weakness.

Output, new orders, purchasing and employment in November all moderated to larger extents than in October.

Meanwhile, currency weakness again caused increases in input costs and output prices.

Andrew Harker, economics director at S&P Global Market Intelligence, 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.

“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."

Purchasing activity and inventories of both inputs and finished goods also contracted during the course of November, the survey data showed.

The rate of input cost inflation eased to a six-month low in the monthh, but remained marked amid widespread reports that currency weakness had pushed up prices for materials, S&P also observed.