Istanbul, Sep 1 () – The purchasing managers index (PMI) of manufacturing business in Turkey fell to 49.3 in August and showed the industry has re-entered a period of contraction.
According to latest PMI survey data from Istanbul Chamber of Industry and Markit, while the production remained the same against the previous months due to the deterioration in new orders that are not that strong, the employment of the industry fell for the second time in last six years.
“Having shown signs of stabilisation in July, the Turkish manufacturing sector slipped back into contraction in August. Domestic markets drove the overall decline in new orders during the month, as exports received a boost from the weak lira" Trevor Balchin, Senior Economist at Markit, said.
While the headline PMI fell from 50.1 to 49.3 again, the figure under 50 has been reached, referring to a contraction, for the sixth time this year.
Also, the new orders from the industry saw contraction for the eighth time in a row in August, and the new order sub-index fell from 49.8 to 49.6 showing the deterioration weakly continues
Markit noted that the deterioration in the companies stemmed ftom the political incertainty, which has created pressure on the orders.
Manufacturing PMI is a composite single-figure indicator of manufacturing performance, deriving from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.