Challenging scene for Turkish manufacturers as Oct starts: S&P Global

Stocks of purchases, meanwhile, were scaled back to the largest extent in almost four-and-a-half years. On the price front, both input costs and output prices rose at softer rates.

The headline Istanbul Chamber of Industry Turkiye manufacturing purchasing managers’ index (PMI) posted 45.8 in October, up from 44.3 in September, but still below the 50 no-change mark, and therefore, signalling a moderation of business conditions during the month.

The health of the Turkish manufacturing sector has eased in each survey period since April.

Market conditions remained challenging, leading to muted demand and further slowdowns in total new orders and exports. In turn, manufacturers scaled back production for the seventh month running. In all cases, however, rates of moderation softened from September.

Employment and purchasing activity were also scaled back in response to muted new orders, although in some cases firms reported that voluntary resignations had caused a drop in staffing levels, an S&P Global release said.

Meanwhile, stocks of purchases decreased to the largest extent since May 2020.

Inflationary pressures continued to soften at the beginning of October. Input costs rose markedly, but at the softest pace for almost a year-and-a-half. The pace of output price inflation also eased.

Suppliers' delivery times in Turkiye lengthened in October following a first improvement in vendor performance for nine months during September. However, latest data signalled only a modest lengthening of lead times.

Fibre2Fashion News Desk (DS)