Turkey: Manufacturing PMI recovers to three-month high in October
November 2, 2015
The Manufacturing Purchasing Managers’ Index (PMI), elaborated by the Istanbul Chamber of Industry (ICI) and Markit, rose from 48.8 in September to 49.5 in October, hitting a three-month high. Despite the improvement, the PMI continues below the 50-threshold that separates contraction from expansion in manufacturing conditions.
October’s upturn mainly reflected a softer decline in both output and new orders. Moreover, the employment category recorded further gains in October. The weakening of the lira contributed to the increase in export orders, but also fanned inflationary pressures. ICI analysts added that, “Turkey’s manufacturing malaise continued in October, although the latest survey results suggest that the extent of the downturn remains modest. Output and new orders both fell only slightly during the month, while exports and jobs both registered further growth. Firms also saw some respite from intensifying cost pressures as the lira strengthened slightly, but inflationary pressures remain strong overall.”