Manufacturing PMI decreased in November

The results of the Istanbul Chamber of Industry (ISO) Turkey Manufacturing PMI (Purchasing Managers Index) survey for the November 2023 period have been announced. According to the survey results, where all figures measured above the threshold value of 50 indicate an improvement in the sector, the headline PMI, which was 48.4 in October, decreased to 47.2 in November 2023 and remained below the 50 threshold value for the fifth consecutive month. This slowdown was at its most significant level in the last year.

Stagnant market conditions both at local and abroad led to the continued loss of momentum in new orders in the middle of the last quarter, thus recording the sharpest slowdown since November 2022. Due to the weakening in demand, manufacturers reduced production by the highest rate in the last year. According to survey participants, geopolitical tensions and difficulties in supplying raw materials also contributed to the decline in production. The decline in production led manufacturers to shrink employment for the second consecutive month, while layoffs and retirements also contributed to the decline. Although the decline in employment was moderate, it was at the highest rate since October 2022. November data indicated that employment in the Turkish manufacturing sector contracted on a monthly basis for the second consecutive year. Although the decrease was slight, it was recorded at the highest level in more than a year. Survey participants stated that the decline in employment was due to insufficient workload, resignations and retirements.

Increase in raw material prices

In addition to purchasing activities, a decrease was observed in companies' input and final product stocks in November. Although input cost inflation fell to its lowest level in the last six months in November, it continued to remain at high levels. Feedback received from companies showed that the increase in raw material prices due to the depreciation of the Turkish Lira was effective in this development. As a result, manufacturers also increased their final product prices, but the rate of increase did not change compared to the previous survey period.