Turkish manufacturing activity contracts for third straight month in June

ISTANBUL

Turkish manufacturing activity contracted for the third month running in June as new orders slowed, a business survey showed on July 2.

The manufacturing Purchasing Managers’ Index (PMI) rose to 46.8 from May’s 46.4, staying below the 50-point line that separates expansion from contraction, the Istanbul Chamber of Industry and IHS Markit said.

The drop in orders led companies to slow production and purchasing, as a sharp rise in input costs caused by a weaker Turkish Lira fed through to output prices, according to a press release.

“Challenging business conditions continued in the Turkish manufacturing sector at the end of the second quarter, according to the latest PMI data. The overall decline reflected further, albeit more moderate, slowdowns in new orders and output. Inflationary pressures remained elevated due to developments in the exchange rate,” Gabriella Dickens, an economist for IHS Markit, said.