September 5, 2022
The leading indicator of economic growth, the Istanbul Chamber of Industry Türkiye Manufacturing PMI, which is regarded as the quickest and most trustworthy reference in the manufacturing industry performance, was 47.4 in August. Although operational conditions declined for the sixth consecutive month, the most recent survey data showed a minor slowdown in the manufacturing sector’s decline. According to the headline indicator, the production slowdown was less severe than it was in July.
In August, numerous industries continued to experience challenging operating conditions, according to the Istanbul Chamber of Industry Türkiye Sectoral PMI survey. The only industry that had more new orders than in July was the land and sea vehicles industry. On the other hand, most sectors saw a fall in production. While employment was the main positive indicator of the last survey, the general decline in input price inflation partially eased the cost pressure on firms.
The Istanbul Chamber of Industry (ISO) Türkiye Manufacturing PMI (Purchasing Managers Index) survey results for the period of August 2022 have been released. This survey is regarded as the quickest and most accurate way to gauge the performance of the manufacturing sector, which is the primary indicator of economic growth. The headline PMI increased from 46.9 in July to 47.4 in August, according to the survey results, which state that all metrics assessed above the threshold value of 50.0 indicate an improvement in the industry. Although operational conditions worsened for the sixth consecutive month, the most recent survey data showed a minor slowdown in the manufacturing sector’s decline. According to the headline indicator, the production slowdown was less severe than it was in July.
August saw a dramatic continuation of the downturn because of the challenging market circumstances and high pricing. In August, the decrease in new orders intensified and reached its greatest level since May 2020. Companies that took part in the survey highlighted the weakening state of the world economy as well as low demand and rising costs. Parallel to this, there was a slowdown in new export orders, and some players saw a decline in European demand. The survey’s reasonably favorable development was the fact that employment increased and did so at a rate that was the greatest it had been in the previous three months. Even though price pressures’ effects on consumer demand and production volumes persisted, the middle of the third quarter still saw signs of a slowdown in inflation.
Inflation rates decreased to the most moderate levels of the last 31 months in input prices and in the last 18 months in finished product prices. Manufacturers reported that they reduced their input purchases in August, as current input stocks are largely sufficient to meet production requirements. Purchasing companies, on the other hand, continued to encounter increased delivery times due to the difficulties experienced by suppliers in supplying materials. The slowdown in sales enabled the upward trend in finished product stocks to reach four months. The increase in inventories was at the fastest pace since September 2015.
Source: Istanbul Chamber of Industry
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