The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 49.0 points in July this year, up from June’s 46.8 points. Any figure greater than 50 indicates an overall improvement of the sector.
The latest PMI data signalled that the challenging business conditions in the the Turkish manufacturing sector continued during July. This situation stemmed from the further slowdowns in production and total new orders. However, new export orders improved for the first time in three months. Meanwhile, inflationary pressures increased in the manufacturing sector following the significant depreciation of the Turkish lira.
“The headline figure suggested that challenging business conditions continued in the Turkish manufacturing sector during July, though the slowdown moderated. On a positive note, export orders and employment increased, partially offsetting slowdowns in total new orders and output. Inflationary pressures sharpened further with output price inflation rising to a 12-year high,” stated Gabriella Dickens, economist at IHS Markit.