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2019.11.0111:27:00UTC+00Turkey Manufacturing Activity Deteriorates In October

Turkey's manufacturing activity contracted in October, survey data from IHS Markit showed on Friday.

The Istanbul Chamber of Industry Turkey Manufacturing purchasing managers' index, or PMI, fell to 49.0 in October from 50.0 in September.

Any reading below 50 indicates contraction in the sector.

New orders softened in October after growing in the previous month, due to weakness in both domestic and export markets. Consequently, production shrunk again.

Employment rose for the second straight month, which was the first back-to-back increase in workforce numbers since early-2018. Backlogs of work moderated further, albeit to the least extent for twenty months.

Input costs rose though the currency weakened and electricity prices increased. The rate of inflation remained muted at the beginning of the final quarter of the year. Output prices fell for the second month in a row to stimulate sales.

"The recent upward trend in the PMI figures took a pause in October, highlighting that market conditions in the Turkish manufacturing sector remain challenging," Andrew Harker, associate director, IHS Markit, said.

"The situation is clearly improved since this time last year, however, and firms were confident enough in the outlook to continue expanding their workforce numbers."

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