Turkish manufacturing business climate challenging in April as price pressures remain elevated, supply-chain disruption continues, says economist
Turkiye’s Purchasing Managers’ Index (PMI) for the manufacturing sector fell to 49.2 in April, below threshold level for the second consecutive month, according to a closely watched business survey on Thursday.
The figure was slightly down from 49.4 in March, showed data provider S&P Global’s monthly report, prepared in collaboration with the Istanbul Chamber of Industry.
Manufacturing production slowed for the fifth month running, albeit to a lesser extent than in March owing to a lack of demand, price pressures and the war in Ukraine.
Companies reported difficulties securing new business amid rising prices with new export business slowed for the first time since January.
Exchange rate weakness and the war caused higher cost burdens, with the prices of oil,natural gas and sea transportation all up. In response, manufacturers raised their output charges markedly again.
Andrew Harker, economics director at S&P Global, said: “The business climate facing manufacturers in Turkiye was challenging again in April as price pressures remained elevated and supply-chain disruption continued.”
The war smashed exports which softened for the first time in three months, Harker noted, adding: “That said, both cost pressures and supplier delays were at the least pronounced since September last year, providing some hope that conditions will become more conducive to growth as this quarter progresses.”