Turkey: Manufacturing PMI continues to sink in September
The Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, fell sharply from 46.4 in August to 42.7 in September. As a result, the index remained below the crucial 50-point threshold that separates expansion from contraction in the manufacturing sector for the sixth consecutive month.
The decline in the index came on larger contractions in output and new orders, which consequently led companies to cut staff. In addition, new exports declined, despite currency weakness. The weaker lira fed through to record input and output price inflation.
Central Bank figures showed that the manufacturing sector’s capacity utilization rate declined notably from 77.8% in August to 76.2% in September, the weakest reading in over two years and a sure sign of softer activity in the sector.