PMI shows Turkey’s manufacturing recovery sustained in May

PMI shows Turkey’s manufacturing recovery sustained in May
/ S&P Global
By bne IntelIiNews June 1, 2023

The recovery in the Turkish manufacturing sector was sustained in May amid reports of improving customer demand, according to the latest Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI).

Turkey’s headline PMI was unchanged at 51.5 in May, but it posted above the 50.0 no-change mark for the fifth successive month to signal another improvement in manufacturing sector business conditions.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "The gradual recovery of the Turkish manufacturing sector, both from February's earthquake and the lingering disruption caused by the COVID-19 pandemic, remained on track in May.

“Helping firms respond to greater new business volumes was a renewed increase in employment as firms were able to make progress on building up workforce numbers.

“There was more respite on the price front, with inflationary pressures moderating and remaining much less pronounced than has generally been the case since the pandemic. This relatively benign environment should help to sustain the recovery in the months ahead."

The PMI showed new orders, including export orders, and output increased, while firms also expanded their purchasing activity. “There were further signs of easing inflationary pressures, although input costs and selling prices continued to increase amid reports of currency weakness pushing up prices,” S&P said.