Turkiye PMI rises to three month high
AgenciesTürkiye’s manufacturing activity rose to a three-month high in August, a survey showed Tuesday, signaling a modest improvement in business conditions even as the sector rem...
Turkey's manufacturing activity reached a three-month high in August, according to a survey released on Tuesday. The Istanbul Chamber of Industry's Manufacturing Purchasing Managers' Index (PMI) climbed to 48.1 in August from 47.7 in July. A figure below 50 signifies contraction, while above 50 indicates growth. The survey revealed that the ongoing conflict in the Middle East continues to negatively impact the manufacturing sector, causing subdued demand and increased market uncertainty.
New orders and new export business both fell in August, although the declines were less severe than in July. Manufacturers also reduced production for the third consecutive month, but the decrease was relatively mild and similar to the pace seen in July. Due to limited workloads, manufacturers cut employment and purchasing activity at significant rates, with both figures accelerating from the previous month.
Companies also reduced their existing inventories to fulfill orders where feasible, resulting in further decreases in stocks of both purchases and finished goods. Inflation related to input costs surged to a three-month high due to higher fuel and oil prices, as well as rising costs for raw materials. Manufacturers reacted by raising their selling prices.
Output price inflation also accelerated, albeit remaining below its annual average. The survey indicated that supplier delivery times extended as disruptions from the Middle East conflict disrupted supply chains. Andrew Harker, the economics director at S&P Global Market Intelligence, stated that the Middle East conflict continues to cast a shadow over the manufacturing sector, limiting demand and adding uncertainty to business decisions.
Despite this, firms have managed to minimize the impact, with new orders decreasing to their lowest level in three months during August. Harker added, "This offers some hope that the sector can pick up pace in the coming months, but much still depends on the developments in the Middle East and how they unfold."
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