Conditions in Türkiye’s manufacturing sector deteriorated further in October, with the Istanbul Chamber of Industry (İSO) Türkiye Manufacturing PMI falling to 47.3 from 47.9 in September, according to the survey results published on Monday and reported by Foreks, Hibya news agency, Ticaret Gazetesi and CNBC-e.
The purchasing managers’ index (PMI) is compiled by İSO with analysis by S&P Global Market Intelligence. Readings above 50.0 signal improvement in operating conditions and readings below 50.0 signal deterioration. October’s reading was the lowest since June, and the outlets reported that the downturn has now reached its 31st month.
Orders and output
New orders continued to fall in October, and the decline was the sharpest of the last three months, the reports said, citing difficult market conditions and inflationary pressure. New export orders also lost momentum. Manufacturers responded by cutting production at a faster pace and kept their inventories limited.
Employment fell again as workloads eased and some staff resigned, but the reduction was mild and the smallest since June.
Costs and prices
Input costs rose sharply once more, driven by oil prices, raw material costs and the exchange rate, according to the survey. The rate of cost inflation eased from September but remained high. Manufacturers continued to raise their selling prices markedly.
Supplier delivery times lengthened, though only modestly, with disruption to sea transport and material shortages cited as causes.
Andrew Harker, economics director at S&P Global Market Intelligence, said demand remained weak while prices rose sharply and delivery times kept lengthening, Foreks and Ticaret Gazetesi reported. He described the mild fall in employment as a relatively positive sign that the decline in output could slow in the coming months.
Sector picture
In the separate İSO Türkiye Sectoral PMI, only one of the 10 sectors tracked, clothing and leather products, raised output in October, its first increase in three months. Non-metallic mineral products recorded the steepest fall. New orders rose only in food products and in clothing and leather products, which were also the only two sectors to add jobs.
The sharpest rise in selling prices was in electrical and electronic products, the fastest increase for that sector since February 2024, while input costs rose fastest in food products and in chemical, plastic and rubber products.
Our earlier reports covered Istanbul inflation in October, record September exports and the central bank market participants survey.
Sources
- YENİLEME- İSO Türkiye İmalat PMI ekimde 47,3’e geriledi (Foreks)
- İSO Türkiye İmalat PMI Ekim’de 47,3’e geriledi (Hibya)
- İSO Türkiye İmalat PMI ekimde 47,3’e geriledi (Ticaret Gazetesi)
- ISO İmalat PMI ekimde geriledi: 31 aydır 50’nin altında (CNBC-e)
Photo: Zeynel Cebeci / CC BY-SA 4.0, via Wikimedia Commons
