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Türkiye’s factories cut output again as September PMI slips to 47.9

Türkiye’s manufacturing PMI slipped to 47.9 in September as weak orders prompted another reduction in production, staffing and purchases. Business conditions have deteriorated monthly for two and a half years. Input and selling-price inflation accelerated, while food manufacturing stood out as the only surveyed sector to increase both output and new orders.

Economics & Markets··Evening
A worker checks components beside partly idle workstations in a Turkish factory.

Business conditions deteriorate again

The Istanbul Chamber of Industry, which represents manufacturers in Türkiye’s largest city, reported its Türkiye manufacturing purchasing managers’ index at 47.9 in September, down from 48.1 in August.[1], [2]

The PMI remained below the 50 threshold for improving business conditions. Monthly deterioration has continued for two and a half years. New orders declined slightly faster than in August, and weak international demand also reduced export orders. Manufacturers cut output for a fourth successive month, with a sharper decline than in the previous survey. Firms reduced employment, purchases and inventories to adjust to lower orders.[1]

Input and selling-price inflation accelerate

Respondents cited uncertainty surrounding the Middle East war and rising fuel, transport and raw-material costs. Both input-price inflation and final selling-price inflation reached four-month highs. Shipping delays and material shortages lengthened supplier delivery times. S&P Global economist Andrew Harker described the slightly higher third-quarter average PMI, compared with the second quarter, as a tentative sign of recovery.[1]

Food manufacturing increases output and orders

Nine of the ten surveyed sectors reduced production. Food manufacturing was the exception, increasing output for the first time in seven months and recording the only rise in new orders. Chemicals, plastics and rubber suffered the strongest production contraction. Wood and paper products recorded the sharpest declines in orders and employment. Only vehicles and electrical and electronic products increased staffing.[1]

References

  1. News sourceİstanbul Sanayi OdasıTürkiye manufacturing PMI falls to 47.9 in September↩1↩2↩3↩4
  2. News sourceEkonomimTürkiye manufacturing PMI declines to 47.9↩
Chip wars and the supply chainRussia-Ukraine warCentral banks and the rate cycleEnergy transition and climate

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