Turkiye's manufacturing sector showed signs of nearing stabilisation in September 2023, as the headline purchasing managers’ index (PMI) increased to 49.6, up from 49 in August 2023, according to Istanbul Chamber of Industry Turkiye Manufacturing PMI produced by S&P Global. Despite the marginal uptick, this marks the third consecutive month of weakening in the sector's health. The latest PMI reading suggests that business conditions are moving closer to a balanced state.

Production eased for the third month running, but only marginally and to a lesser extent than in the previous survey period. Where output moderated, this was generally a reflection of weak market conditions and a slowdown in new orders. On the other hand, some firms saw demand hold up over the month.

Both total new orders and new export business eased further in September, but at a softer pace than in August. A common theme among anecdotal evidence from panellists was that price pressures had restricted customer demand, as per S&P Global.

Input costs continued to rise sharply at the end of the third quarter amid ongoing currency weakness. The rate of inflation was much slower than in August, however, and the weakest overall since May. In turn, the pace of output price inflation also eased markedly from the previous survey period.

Latest data pointed to a fractional rise in employment, extending the current sequence of job creation to five months. Some firms highlighted the need for additional workers, but others scaled back staffing levels amid softer new order inflows.

Firms continued to moderate their purchasing activity and stocks of inputs amid weakness of new orders, although the respective slowdowns were less pronounced than in August.

Where inputs were purchased, manufacturers were faced with delivery delays, as has been the case throughout 2023 so far. According to respondents, the latest decline in vendor performance was due to high transportation costs and difficulties importing goods.

Fibre2Fashion News Desk (DP)

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