Turkey: Manufacturing PMI signals softer deterioration in August
September 1, 2022
The ICI Manufacturing Purchasing Managers' Index (PMI) ticked up to 47.4 in August from 46.9 in July. However, the index remained entrenched below the neutral 50-threshold separating an overall deterioration from an improvement in business conditions compared to the prior month.
The headline uptick was driven by a softer contraction in output and moderating inflationary pressures, while employment continued to rise. That said, new orders slowed at the sharpest pace since May 2020 due to muted demand, price increases and a weakened global economy. Similarly, new export orders fell as demand from Europe waned. Looking at prices, input and output price inflation moderated to 31- and 18-month lows, respectively.
Andrew Harker, economics director at S&P Global, commented:
“Market conditions are clearly challenging at present, with weakness in both domestic and export markets. […] Less pronounced price rises may help to limit the slowdowns in demand over the months ahead.”