Local production slows on falling foreign order

ISTANBUL/LONDON - Reuters

The Purchasing Managers’ Index (PIM) for Turkey fell to 51.1 in May from 51.3 of April. DAILY NEWS photo, Hasan ALTINIŞIK

Turkey’s manufacturing Purchasing Managers’ Index (PMI) slowed down for the fourth consecutive month in May due to falling export orders.

The country’s PMI retreated to 51.1, according to Markit’s PMI for HSBC released yesterday.

Although the fact that the figure remains above 50 indicates that Turkey continues to enjoy growth, the index has been sliding for four months. The April PMI was 51.3.

A factory production sub-index for Turkey showed manufacturing stagnating as it fell slightly from 50.2 to 50 after nine months of disrupted manufacturing growth.

However, the new export orders highlight the contraction, slumping from 50.3 to 48.7 in April, while the overall orders fell from 50.9 to 50.6 as well.

“Even though purchasing managers’ index have been indicating the recovery of the manufacturing industry since September 2012, the rate of recovery has been losing momentum since February,” HSBC Turkey Economist Melis Metiner said, explaining the companies continued to deplete their stocks in May, as they have been doing since February.

Eurozone factory slump eases

Meanwhile, PMI data released for top global economies showed that eurozone manufacturing contracted again last month, although at a slightly slower pace, while Asian factories lost momentum, underlining the somber prospects for the world economy in the second quarter.

Markit’s PMIs for Asia and Europe provided early grim reading. “The global economy remains weak. ... There’s nothing in the system at the moment, certainly in China, that suggests there is a big pick-up in store just around the corner,” said Victoria Clarke at Investec.

The HSBC China PMI fell in May to 49.2, the lowest level since October 2012 and down from April’s 50.4. For the eurozone, Markit’s PMI rose to 48.3 from April’s 46.7 but spent its 22nd month below the watershed 50 level that marks contraction.