Turkey: Manufacturing index at 45.3 points

ANKARA (AA): Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector posted 45.3 points in May this year, according to a monthly business survey on Monday. An Istanbul Chamber of Industry’s PMI report conducted in cooperation with IHS Markit said monthly data pointed to increases in both input costs and output prices last month.

Last month, the PMI fell 1.5 points compared to April’s index value of 46.8.

“Anecdotal evidence from survey respondents indicated that the depreciation in the Turkish lira affected the manufacturing sector during the month,” the report said. In May, the US dollar/Turkish lira exchange rate was 6.06 on average, as it was 5.75 in April. PMI report stated that customer demand showed ongoing signs of weakness with prices rising, adding: “New orders moderated, while some panelists pointed to weakness in demand from European clients.”

“This led manufacturers to scale back purchasing activity during May,” it said. “Suppliers’ delivery times lengthened modestly in May, with panelists reporting cash problems.” The manufacturing PMI — derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases — is a composite single-figure indicator of manufacturing performance.

An index value above 50 indicates the sector is growing, while a figure below 50 signals a contraction.