Turkey: Manufacturing PMI ticks up in October but remains in contractionary territory
The Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, increased from 42.7 in September to 44.3 in October. However, the index remained below the crucial 50-point threshold that separates expansion from contraction in the manufacturing sector for the seventh consecutive month.
The uptick in the index came on smaller contractions in output, new orders and employment. However, the decline in new export orders deepened. Input and output price inflation eased thanks to greater stability in the foreign exchange market.
In line with lower manufacturing output, Central Bank figures showed that the manufacturing sector’s capacity utilization rate declined from 76.2% in September to 75.4% in October, the weakest reading in over three years.