Turkey manufacturing recorded at 50.0 neutral mark by March PMI

Turkey manufacturing recorded at 50.0 neutral mark by March PMI
/ S&P Global
By bne IntelliNews April 2, 2024

Turkish manufacturing experienced unchanged operating conditions in March, according to the latest purchasing managers’ index (PMI) survey of the sector.

Output ticked higher, while new orders and employment neared stabilisation. The headline Istanbul Chamber of Industry Türkiye Manufacturing PMI for March was posted at the 50.0 no-change mark, very slightly down from February’s reading of 50.2.

Signs of demand improvements encouraged firms to expand their purchasing activity, but inventories continued to be drawn down, according to PMI compiler S&P Global.

Inflation rates softened but remained elevated with the weakness of the lira against the dollar again a key factor pushing up input prices, it added.

New orders softened to the least extent in nine months, with this relative improvement in the demand environment encouraging some firms to expand production and increase purchasing activity, S&P also noted.

Andrew Harker, economics director at S&P Global Market Intelligence, said: “March was a month of stability for Turkish manufacturers. New orders continued the recent move towards stabilisation and this improving picture prompted further modest increases in output and purchasing.

“If the recent trend in demand continues we should hopefully see growth building momentum as we go through the second quarter of the year.”