According to Turkey's Manufacturing PMI data, the headline PMI, which was 45.8 in October, increased to 48.3 in November. This indicator, which remains below the threshold value, is observed to be at its lowest level since May. PLASFED Chairman Ömer Karadeniz stated that the manufacturing industry has been in contraction according to the indicators since the beginning of the year, and he emphasized that the significant improvement observed in the Turkish manufacturing sector's PMI data in November is encouraging. However, he noted that the general weakness in the manufacturing industry continues, and if necessary steps are not taken, industrialists will postpone their investment plans, which will lead to overall stagnation.
Due to the ongoing challenging market conditions both globally and in our country, a downward trend has been observed in manufacturing performance since the beginning of the year. Continuous declines in manufacturing production have been noted, leading to a decrease in employment and purchasing activities. The weakness of the Turkish lira and inflationary pressures are also causing an increase in input costs.
The Istanbul Chamber of Industry (ISO) Manufacturing PMI survey results, considered a leading indicator of economic growth, revealed an increase in the headline PMI from 45.8 in October to 48.3 in November. Although all figures measured above the threshold value of 50 indicate improvement in the sector, the Manufacturing PMI Index for November remains low at 48.3, indicating that signals of deterioration in business conditions continue.
PLASFED Chairman Ömer Karadeniz stated that the significant indicators of improvement seen in the PMI data of the Turkish manufacturing sector are encouraging in November. However, he reported that according to PMI data, the manufacturing industry has entered the contraction zone, noting that one of the main reasons for the slowdown in growth is the weakness in the manufacturing sector. Karadeniz mentioned that factors such as tight financing conditions, geopolitical tensions, and trade protectionism are negatively affecting the manufacturing industry, and if necessary steps are not taken, industrialists may postpone their investment plans. He explained that companies are shelving their investment and growth plans to protect their existing resources and minimize costs, calling for increased support for the industry.
“The Biggest Strength of Turkish Industrialists is Production”
Karadeniz emphasized that the biggest strength of Turkish industrialists is their ability to create production, which they have achieved through considerable sacrifices, but highlighted that producing comes at a high cost. He noted that this situation is not sustainable, stating, “The industrialist is losing his competitive edge day by day. Both the public sector and private sector, NGOs, and all stakeholders in the economy must show the necessary sacrifices.”
“Progress in the Fight Against Inflation is Encouraging”
Karadeniz pointed out that it is encouraging to see progress in combating inflation as a result of economic policies implemented over the past two years, stating, “As a result of the measures taken, the country risk premium has decreased, Central Bank reserves have increased, and there has been a decline in the current account deficit. With the Central Bank's determined efforts, we can anticipate that inflation will decrease further. Our biggest hope is that the downward trend in inflation will fully materialize.”
The head of the PLASFED umbrella organization noted that while macroeconomic stability is important, it is not sufficient for the challenging global competition, emphasizing that we can position ourselves internationally by supporting our production structure with high-tech products and a green economic transition.
Karadeniz pointed out that to enhance our competitive power and improve our growth performance, we need to increase the share and export of high-tech production, stating that, “The steps taken for the industry will first lead to production and then to employment. The winning party will be the Turkish economy.”
Translated by Artificial Intelligence
