Turkey: Manufacturing PMI falls to five-month low in September
October 1, 2015
The Manufacturing Purchasing Managers’ Index (PMI), elaborated by the Istanbul Chamber of Industry (ICI) and Markit, decreased from 49.3 in August to 48.8 in September, hitting a five-month low. As a result, the PMI now lies further below the 50-threshold that separates contraction from expansion in manufacturing conditions.
September’s downturn mainly reflected a fall in output and another deterioration in new orders. Moreover, a weak lira continued to increase inflationary pressures and input prices increased at the fastest rate since February 2014. On the bright side, the weak lira supported new export business, which rose, and employment recorded a modest rise in September. ICI analysts added that, “Turkey’s manufacturing sector remained in a downturn in September, with new orders and output both falling at faster rates and firms cutting back on purchases. That said, the PMI average for the third quarter as a whole was slightly higher than in both the first and second quarters of the year.”