Manufacturing PMI index rose to 48.1 points in August
While the contraction in the sector continues, the headline index reached a three-month high and an increase in input costs was recorded.
The Istanbul Chamber of Industry Turkey Manufacturing Purchasing Managers' Index rose to 48.1 in August, reaching its highest level in the last three months. Remaining below the threshold value of 50, the index showed an increase from the 47.7 level in July.
Latest Status of the Index
The Istanbul Chamber of Industry Turkey Manufacturing Purchasing Managers' Index rose to 48.1 in August, recording a recovery from the 47.7 level in July.
Although the headline PMI remained below the threshold value of 50, it nevertheless realized at its highest level of the last three months.
Demand and Orders
The war in the Middle East caused uncertainty in the region, leading demand to remain weak in August and putting pressure on the manufacturing sector.
As a result of these developments, both total new orders and new export orders continued their tendency to slow down.
Production and Employment
Due to the slowdown in new orders and exports, manufacturers decided to reduce their production levels for the third consecutive month.
The weakness in workloads led manufacturers to make cutbacks in employment and purchasing activities.
Costs and Expert Opinion
As a result of rising fuel and oil costs and increases in raw material prices, input cost inflation climbed to its highest level in the last three months.
S&P Global Market Intelligence Economics Director Andrew Harker stated that the shadow of the war in the Middle East continues to fall upon the Turkish manufacturing sector.