Turkey: Manufacturing downturn slightly eases in August
The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI) improved to 47.8 in August from 47.2 in July. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer deterioration in manufacturing-sector operating conditions compared to the previous month.
The latest PMI reading was driven by subdued demand conditions. Although the decline in new orders softened, it remained acute. Against this backdrop, firms scaled back production to the largest extent since November. Additionally, employment levels, purchasing activity and stocks of inputs were all cut.
On the price front, input cost inflation softened slightly in August, though it remained elevated due to sustained currency weakness. Meanwhile, manufacturers raised their selling prices at the fastest pace since April.