Turkish factory activity contracts for sixth consecutive month in August – PMI

ISTANBUL, September 1 (Reuters) – Activity in Turkey’s manufacturing sector contracted for the sixth consecutive month in August as demand contracted sharply, leading to a slowdown in output, a survey of employers showed on Thursday. businesses.

Turkey’s Purchasing Managers’ Index (PMI) for industry stood at 47.4 in August, down from 46.9 in July, the Istanbul Chamber of Industry and S&P Global said. , but remaining below the 50-point line that separates growth from contraction.

New orders have slowed at the fastest rate since May 2020, when coronavirus measures were in place around the world, the panel showed, as contributors cited a lack of demand, price hikes and weak the global economy as reasons for the easing.

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Manufacturing output slowed amid tough market conditions and high prices, although the pace of moderation fell slightly from the previous month.

Rising raw material, transport and energy costs, a rise in the minimum wage in Turkey and a weak currency have contributed to higher input and output prices, although the inflation rate declined in both cases, the panel said.

Despite weaker demand and slowing orders, manufacturers hired more staff, with the rate of job creation hitting a three-month high, he also said.

“While production moderated to a lesser extent in August, the trend in new orders was more concerning as new business slowed…Market conditions are clearly challenging at the moment,” Andrew said. Harker, chief economics officer at S&P Global Market Intelligence.

“One area of ​​respite for businesses is that their cost pressures continued to wane in August. .limit demand slowdowns in the coming months.”

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Reporting by Ezgi Erkoyun; Editing by Hugh Lawson

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