Turkey’s manufacturing industry in September endured its worst slowdown since May 2020, according to the latest Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI), released on October 1.

The headline PMI dropped to 44.3 in September from 47.8 in August. Any figure below 50.1 marks a contraction.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "The latest PMI data paint a worrying picture for Turkish manufacturers as the sector moved deeper into its period of moderation at the end of the third quarter. Many firms reported demand weakness, and the struggles to secure new business led them to scale back output, employment and purchasing again.

"While inflationary pressures aren't currently as severe as they have been in recent years, the still marked increases in prices won't be helping to improve the demand environment."

S&P emphasised widespread reports from firms that demand conditions were challenging.

Output, new orders, employment and purchasing all softened to larger degrees than in the previous survey period. Meanwhile, rates of inflation for both input costs and output prices eased marginally, but remained pronounced.

Business conditions in Turkish manufacturing have now moderated in six successive months.

Subdued demand in international markets was also signalled by a renewed moderation in new export orders, the PMI data showed. Output was scaled back to the largest extent in four and a half years.

Some firms indicated that full-time workers had departed during the month, leading to the most marked easing of staffing levels since April 2020, S&P added.