The manufacturing PMI index, compiled by the Istanbul Chamber of Industry (ISO), decreased to 47.2 in July, down from 47.9 in June, marking the fourth consecutive month below the 50 level that separates growth from contraction. The index has reached its lowest level since November.
Manufacturers reduce production, while production and employment dropped
Manufacturers continued to reduce production for the fourth consecutive month, citing weak demand conditions. The output subindex decrease from 47.4 to 46.5 in July. Employment also decreased in line with new orders; however, companies noted that this decline also included resignations and retirements. The reduction in employment was the most pronounced in 21 months.
The contraction in demand led to drops in new orders, production, and employment. While companies experienced increases in input costs and final product prices compared to June, supply chain delays also continued. The contraction in new orders accelerated in July. The new orders sub-index decrease from 45.5 in June to 44.3 in July, reaching its lowest level since November. The new export orders sub-index decrease from 49 to 47.5.
Comments
No comment yet.