Türkiye's manufacturing activity contracts most so far in 2023

ANKARA

Türkiye's manufacturing activity contracted the most so far this year as new orders moderated amid strong price pressures, according to a survey released on Friday.

Purchasing Managers' Index (PMI) for the manufacturing sector decreased to 49 in August from 49.9 in July, a monthly report by the Istanbul Chamber of Industry and by the US-based financial services company S&P Global showed.

The PMI was below the 50 threshold mark for the second consecutive month.

"It was a familiar story for the Turkish manufacturing sector in August, with price pressures acting to restrict demand and leading to a general moderation of business conditions," said Andrew Harker, S&P Global's economics director.

Input costs increased sharply and at a pace that was only slightly softer than the 16-month high posted in July, read the report.

Moderation of new orders led manufacturers to scale back their production in August, the second month in a row.

"The main positive element in the latest report was that firms continued to hire additional staff, although the rate of job creation was only fractional so it remains to be seen if this growth will continue should demand conditions remain subdued," Harker added.