Turkey's manufacturing activity in October declined at a slower pace for the first time since July, amid less weakness in production and an easing in inflationary pressures, survey data from IHS Markit and the Istanbul Chamber of Industry showed on Thursday.
The Turkey Manufacturing Purchasing Managers' Index, or PMI, climbed to 44.3 from 42.7 in September. A reading below 50 suggests decline in activity. The factory sector has now shrunk for the seventh consecutive month.
A stabilization of the lira exchange rate helped lead to a marked slowdown in the rate of input cost inflation in October, the report said. Output prices increased at the weakest pace since March.
The rate of moderation in output and new orders also eased from September. Manufacturers continued to scale back employment and purchasing activity.
"Latest PMI data suggest that the worst of the current difficulties may have been seen in September, with key indicators such as output, new orders and employment all moderating at weaker rates in October amid a slowdown in inflation," IHS Markit Associate Director Andrew Harker said.
"That said, market conditions remained challenging for firms and further improvements will be needed in coming months if we are to see a return to growth."
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