Turkish factory activity contracted for the fifth month in a row in August as a slowdown in demand caused firms to scale back output, employment and purchasing activity.
The Purchasing Managers' Index (PMI) for Turkish manufacturing ticked up to 47.8 from 47.2 in July, according to a survey by the Istanbul Chamber of Industry and S&P Global, still standing below the 50-point level that marks growth in activity, Reuters reported.
Although new export orders returned to growth for the first time in more than a year, challenging market conditions led to a further softening of total new orders, the survey showed. Some firms reported that the slowdown in demand led them to reduce workforce numbers.
Input costs continued to rise with currency weakness being the main factor behind higher prices, according to the survey, and manufacturers in turn raised their output prices in August.
Firms were reluctant to hold inventories due to a slowdown in new orders, reducing their holdings of both purchases and finished goods, the survey showed.
"The subdued overall demand picture led to further scaling back of production, employment and purchasing," Andrew Harker, economics director at S&P Global Market Intelligence, said.
"Hopefully, the nascent recovery in exports seen in August will solidify in the months ahead and spread more widely to help the sector move into recovery mode."
