© Reuters. FILE PHOTO: Technicians work on a Cobra II, armored personnel carrier, at a production line at Turkey's heavy commercial and armored vehicle manufacturer Otokar factory in Arifiye, a town in Sakarya province, Turkey, July 13, 2023. REUTERS/Umit Bektas/Fil ISTANBUL (Reuters) - Turkish factory activity contracted for a fourth consecutive month in October as firms struggled to secure new business and scaled back production, a survey showed on Wednesday.
The Purchasing Managers' Index (PMI) for manufacturing fell to 48.4 from 49.6 in September, according to a survey by the Istanbul Chamber of Industry and S&P Global, moving further below the 50-point mark that separates growth from contraction.
Total new orders slowed the most since late last year, signalling widespread demand weakness, both domestically and internationally, the survey showed.
Production continued to be scaled back while firms reduced staffing, the panel said.
Manufacturers scaled back their purchasing activity, stocks of purchases and inventories of finished goods in response to a drop in order requirements, the panel showed.
Rise in prices were often linked to currency weakness, the survey also said, however, rates of increase in input costs and output prices eased.
"Demand conditions were the main limiting factor on the Turkish manufacturing sector in October, with firms struggling to secure sufficient volumes of new orders to support production and maintain staffing levels," said Andrew Harker, economics director at S&P Global Market Intelligence.
"There was some further respite in terms of inflation, however, which may provide some grounds for optimism that an improved demand environment can become established soon."