Local Turkey

Turkish manufacturing PMI below threshold level for 1st time in year

COVID-19 lockdown, associated softening of client demand led to moderations in both output, new orders during May

Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector fell below threshold level for the first time in a year, according to a closely watched business survey on Tuesday.

The index hit 49.3 in May, down from 50.4 in April, showed London-based global data firm IHS Markit’s monthly report, prepared in collaboration with the Istanbul Chamber of Industry.

PMI for the manufacturing sector is seen as an important gauge in tracking the health of the sector, with values below 50 points showing contraction while above indicates expansion.

The decrease was stemmed from COVID-19 lockdown measures that was in place for much of last month and supply-chain disruptions, the report said.

“The COVID-19 lockdown, and associated softening of client demand, led to moderations in both output and new orders during May,” it said.

New export orders also decreased, ending a four-month sequence of growth, according to the report.

On the job creation side, the figure eased to the weakest in the current 12-month sequence of rising employment.

Noting that supply-chain disruptions and currency weakness led to increases in prices, the report said: “Input costs rose sharply again in May, and at a slightly faster pace than in the previous month.”​​​​​​​

Source
AA

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