Turkey: Manufacturing PMI falls in August
September 3, 2015
The Manufacturing Purchasing Managers’ Index (PMI), elaborated by the Istanbul Chamber of Industry and Markit, decreased from 50.1 in July to 49.3 in August, falling into contractionary territory. As a result, the PMI now lies below the 50-threshold that separates contraction from expansion in manufacturing conditions.
August’s fall mainly reflected a deterioration in new orders while output remained unchanged. In addition, employment fell for the second time since June 2009. Moreover, a relatively weak lira led input price inflation to rise significantly in August and hit a year-and-a-half high. Markit analysts added that, “having shown signs of stabilisation in July, the Turkish manufacturing sector slipped back into contraction in August. Domestic markets drove the overall decline in new orders during the month, as exports received a boost from the weak lira. That said, new export business rose only marginally.“