Turkey: Manufacturing PMI falls to over two-year low in November

The ICI Manufacturing Purchasing Managers' Index (PMI) came in at 45.7 in November, down from October's 46.4. November's result marked the worst reading since May 2020. Consequently, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in manufacturing sector operating conditions compared to the previous month.

November’s downtick was driven by weaker domestic and foreign demand, which caused the sharpest slowdown in new orders for two and half years and led to a further decrease in output. Meanwhile, input cost inflation eased to a three-year low due to lower demand for inputs. As a result, price charges rose at a softer clip. Lower input demand also led to a significant improvement in supplier performance. Turning to employment, firms increased their staffing levels in November, albeit at a marginal rate.

FocusEconomics Consensus Forecast participants see fixed investment expanding 1.4% in 2023, which is up 0.2 percentage points from last month’s forecast, and growing 3.2% in 2024.