Turkey Factory Activity Shrinks Again

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Turkey Factory Activity Shrinks Again

Turkey's Factory Activity Shrinks Again In September

PMI, which is a measure of the factory activity in Turkey, contracted once again during September. This marks the 3rd month in a row that Turkey's manufacturing activity continues to shrink.

However, the contraction during September was very minimal, which is an indication that the slowdown in new orders and output is not as intense as it was in the past.

In August, the Turkish PMI (manufacturing sector) was recorded at 49.00. For the last month (September), the same index reached 49.6, which indicates a jump of 0.6. Although an increase was witnessed in Turkey's factory activity, it is still below 50, which indicates a contraction.

Contraction For 3rd Month In A Row

Overall, the contraction continued for the 3rd month in a row and highlights a slowdown in the new business. At the same time, it also highlights that the market conditions in Turkey are weak, which is also affecting this particular sector.

Looking ahead, some experts believe that the demand will gradually pick up in the next few months. If this happens, it would mean an uptick in the manufacturing sector of Turkey as well.

According to one analyst, the price pressure in Turkey has put a lid on consumer demand. As a result, the new orders also took a hit, but the pace is not as intense as it was in August.

One of the biggest factors that contributed to the increase in the input/output prices is the weakness of the Turkish Lira. At the same time, inflation has started to show signs of a slowdown. In addition, employment is also rising little by little, which indicates a recovery in the economy.

Overall, September marks the first month that the manufacturing sector of Turkey is showing signs of a little bit of stabilization. But unless the 50 mark is crossed by the Turkish PMI reading, the label of contraction will remain in place.

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