Turkey’s manufacturing sector plummets in Q3 ’24 – PMI

Turkey’s manufacturing sector experienced a notable decline at the end of the third quarter, as the Istanbul Chamber of Industry’s Manufacturing PMI fell to 44.3 in September from 47.8 in August.

This marked the most significant slowdown since May 2020, with business conditions deteriorating for the sixth consecutive month.

Firms reported challenging demand conditions, resulting in the sharpest drop in new orders in nearly four and a half years, alongside a decline in new export orders.

Production levels decreased due to muted order inflows, reflecting a sustained moderation in activity. Employment and purchasing activities were also scaled back significantly, with some companies noting that full-time workers left, leading to the largest reduction in staffing since April 2020.

While input costs continued to rise due to currency weakness and higher raw material prices, the inflation rate eased to a three-month low.

Output prices also increased at a pace similar to the previous month. The overall outlook for the sector remains subdued, with manufacturers facing ongoing challenges amid reduced demand and inflationary pressures.

“The latest PMI data paint a worrying picture for Turkish manufacturers as the sector moved deeper into its period of moderation at the end of the third quarter. Many firms reported demand weakness, and the struggles to secure new business led them to scale back output, employment and purchasing again.”Andrew Harker, economics director at S&P Global Market Intelligence, said.

“While inflationary pressures aren’t currently as severe as they have been in recent years, the still-marked increases in prices won’t be helping to improve the demand environment.” Harker warned.

Attribution: S&P Global

Subediting: Y.Yasser