Türkiye’s October manufacturing survey fell further below its expansion threshold as new orders and production weakened more quickly. Employment continued to decline, although job losses slowed. Clothing and leather products was the only industry with higher output among the ten surveyed sectors, while manufacturers faced rising selling prices and delivery delays. Operating conditions have deteriorated for 31 consecutive months.
Economics & Markets··Evening
Orders weaken and factories cut output
Türkiye’s manufacturers began the final quarter with a sharper decline in business conditions. The Istanbul Chamber of Industry’s Manufacturing Purchasing Managers’ Index (PMI), a monthly survey of factory activity, slipped from 47.9 in September to 47.3 in October. Values below 50 indicate deterioration from the preceding month. October brought the weakest reading since June and extended the downturn to 31 consecutive months. New orders contracted at their fastest pace in three months, while export orders also declined.[1], [2]
Job losses slow as stocks shrink
Factories responded to weak demand by reducing production more quickly and keeping inventories limited. Employment continued to fall, though the pace of job losses was the slowest since June. Manufacturers cited lower workloads and voluntary departures. Input prices rose sharply, with firms pointing to oil, raw materials and exchange rates. The overall pace of input inflation eased from September but stayed above its average for the year so far. Selling prices continued to rise, and sea-transport problems and material shortages lengthened supplier delivery times.[1]
Clothing is the sole sector to raise production
Among the ten industries in the sector survey, only clothing and leather products increased output. That industry returned to growth after three months, while food production declined again. Non-metallic mineral products suffered the steepest falls in both production and new orders. Food and clothing and leather products were the sectors with increases in new orders, export orders and employment. Electrical and electronic products and basic metals experienced particularly pronounced delivery delays.[1]
