The Turkish manufacturing sector saw its activity pick up last month as pressures eased somewhat, although it remained in a downturn, according to a top survey released on Monday.
The Istanbul Chamber of Industry (ISO) Türkiye Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 47.3 in August from 45.9 in July. But it was still below the 50.0 threshold separating growth from contraction.
"Although Turkish manufacturers continued to face a challenging market environment in August, there were some signs of pressures easing as output and new orders moderated to lesser extents than in July," the S&P Global said.
New orders softened again, but the pace of decline was the weakest since February, according to the survey, while new export orders slowed more significantly than total new business, reflecting a subdued demand environment.
Production also moderated at a slower rate, marking the weakest slowdown in six months. Purchasing activity was scaled back, resulting in reduced stock levels of inputs, while finished goods stocks were depleted for the second consecutive month.
"Business conditions remained challenging for Turkish manufacturers in August, and employment was scaled back markedly as a result," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
"There were, however, some signs of positivity from the latest PMI survey, which showed the respective slowdowns in output and new orders losing steam."
"If these trends continue in the months ahead, then the sector could be looking brighter as we head towards the end of the year," he concluded.
