Manufacturing PMI falls to its lowest level in eight months

Turkey manufacturing PMI (Purchasing Managers’ Index) survey results from Istanbul Chamber of Industry (ISO) for the period August 2023, which is considered the fastest and most reliable benchmark on manufacturing industry performance , which is the main indicator of economic growth. have been announced.

Consequently, Turkey’s manufacturing PMI, which was 49.9 in July, fell to 49 in August and remained below the 50 threshold for the second consecutive month, indicating that the loss of momentum in the manufacturing sector continues. Turkish.

ICI Turkey’s manufacturing PMI, which has been flat at 51.5 for the past two months, eased back to 49.9 in July.

Thus, the index fell to its lowest level in 8 months from August.

Values ​​less than 50 indicate contraction, while values ​​greater than 50 indicate growth.

PRODUCTION INCREASED IN ONLY 4 OF 10 SECTORS

Businesses reported that they had difficulty receiving new orders and that the decline in new purchases accelerated from the previous month.

Strong price pressures were the main factor deterring customers from placing new orders.

According to Turkey’s Istanbul Chamber of Industry’s August sectoral PMI report, production increased in four out of 10 industries tracked.

THE HARDEST SLOWDOWN IN CLOTHING AND LEATHER

The strongest increase was recorded in electrical and electronic products, while the sharpest slowdown was seen in clothing and leather products.

While most industries lost momentum in new orders, input costs across the board continued to rise rapidly.

The most significant increase occurred in land and sea vehicles.

Non-metallic mineral products posted the fastest increase in sales prices. Employment increased in four out of ten sectors.

‘LIMITED DEMAND PRICE PRESSURE’

Commenting on Turkey’s manufacturing PMI survey data from the Istanbul Chamber of Industry, Andrew Harker, chief economic officer at S&P Global Market Intelligence, said:

“The August data points to developments that Turkish manufacturers know very well. Price pressures limited demand, resulting in a general slowdown in operating conditions. Inflationary pressures remained elevated, although they slowed slightly in the latest survey period.

The main positive development from the latest survey was that companies continued to hire additional staff, albeit on a limited basis. On the other hand, if demand conditions continue to stagnate, time will tell if such growth will continue.”