Stating that the ISO Turkey Manufacturing PMI data indicated that the slowdown in production has become structural, PLASFED President Ömer Karadeniz said, "Rising costs and weak demand are challenging industrialists' resilience. Inflation; it lowers financial performance and reduces production motivation." Karadeniz emphasized that cost pressures must be eased and steps to stimulate demand must be taken for industrial production to regain momentum.
The Istanbul Chamber of Industry (ISO) Turkey Manufacturing PMI data, considered a leading indicator of economic growth, revealed the ongoing stagnation on the production front in October. The headline PMI, which was 46.7 in September, fell to 46.5 in October, indicating that the deterioration in the manufacturing industry continued for the third consecutive month.
Ömer Karadeniz, Chairman of the Board of the Plastics Industrialists' Federation (PLASFED), evaluated the announced data and stated that the 19-month slowdown trend in industrial production constitutes a serious warning.
Karadeniz said that the PMI data shows industrialists that the loss of momentum in production has now become a structural problem, "The weakening on the demand side is felt in both the domestic market and exports. While companies struggle to get new orders, the increase in input costs also weakens production motivation. Especially the sharp rise in input prices in the chemical, plastic, and rubber sectors is challenging industrialists' resilience," he said.
"Inflation is lowering financial performance"
According to the Turkish Statistical Institute (TUIK) October inflation data, monthly inflation increased by 2.55 percent, while annual inflation stood at 32.87 percent.
PLASFED President Karadeniz, the umbrella organization, pointed out that producer prices cannot be reflected in sales prices at the same rate and made the following assessment:
"In many manufacturing sectors, especially the plastics sector, companies cannot fully reflect cost increases in their prices. This situation lowers financial performance and limits businesses' capacity for investment, employment, and growth. Energy, raw material, and financing costs continue to suppress industrial production.
According to TUIK data, inflation increased by 2.55 percent on a monthly basis. This reveals that price increases continue for consumers. However, due to competitive pressure, producers cannot implement price increases at the same rate. This difference negatively affects the financial balances of the real sector."
"Manufacturing industry is the backbone of the Turkish economy"
Karadeniz emphasized the need for reducing cost burdens, facilitating access to finance, and implementing domestic and foreign demand policies to encourage new orders for industrial production to achieve a sustainable structure. The President of PLASFED, the umbrella organization of the plastics sector, pointed out that a predictable cost structure and a strong investment climate are needed for industrialists to see ahead, "The manufacturing industry is the backbone of the Turkish economy. Every step taken to strengthen this backbone will directly support employment and exports," he said.
This content has been translated using artificial intelligence technology.