In the opening of the fourth quarter of 2023, Turkish manufacturers grappled with a challenging demand landscape, finding it increasingly difficult to secure new orders, as reported by S&P Global. This led to a reduction in production, prompting firms to adjust employment levels and purchasing activity. Both total new orders and new export business experienced a moderation throughout the month.
Despite these hurdles, there was a glimmer of relief on the inflationary front. S&P Global notes that both input costs and selling prices rose at softer rates in October compared to September, offering some respite for manufacturers.
The Istanbul Chamber of Industry Turkey manufacturing purchasing managers’ index stayed below the 50 no-change mark for the fourth consecutive month in October, signaling a modest easing of business conditions at 48.4. This easing was more pronounced than in September when the PMI stood at 49.6.
Total new business saw the most significant slowdown since November of the previous year. In tandem with the decline in new orders, production continued to be scaled back for the fourth consecutive month. October data also revealed a renewed reduction in employment, breaking a five-month sequence of job creation. Manufacturers responded to the drop in order requirements by scaling back purchasing activity, stocks of purchases, and inventories of finished goods.
