Manufacturing PMI falls

LONDON

Turkey’s headline Purchasing Managers’ Index (PMI) for the manufacturing industry eased to 49.2 in April, down from 49.4 in March, indicating a second successive monthly moderation in the health of the sector, the survey conducted jointy by S&P Global and the Istanbul Chamber of Industry (İSO) have shown.

Any figure greater than 50 indicates overall improvement of the sector.

Business conditions in the Turkish manufacturing sector continued to moderate in April amid subdued demand, price and supply pressures and the impacts of the war in Ukraine, the survey said.

Manufacturing production slowed for the fifth month running at the start of the second quarter, albeit to a lesser extent than in March.

“A lack of demand, price pressures and the war in Ukraine were all reportedly factors leading to a scaling back of output.”

Fragile demand was highlighted by a further easing of new orders as firms reported difficulties securing new business amid rising prices. New orders moderated for the seventh month in a row.

Cost pressures remained pronounced in April, although the rate of input price inflation eased for the fourth successive month to the softest since last September.

“Exchange rate weakness and the war in Ukraine were the main factors causing higher cost burdens, according to respondents, with oil, natural gas and sea transportation all reportedly up in price,” the survey said.

The business climate facing manufacturers in Türkiye was challenging again in April as price pressures remained elevated and supply-chain disruption continued, commented Andrew Harker, economics director at S&P Global.

“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,” he said.