Manufacturing PMI sees 11-month low

Istanbul Chamber of Industry (ICI) Turkey Manufacturing PMI (Purchasing Managers Index) posted 50.4 in April, down from 52.6 in March. Thus, the manufacturing PMI fell to its lowest level in last 11 months.

The manufacturing Purchasing Managers Index (PMI) fell to 50.4 in April with acceleration of the pandemic and showed that the growth in the manufacturing industry slowed down. New orders and outputs dropped in April, while companies continued to increase employment.

The number of daily COVID-19 cases and the death toll exceeded 60,000 and 300 respectively in April. Following the increase restrictions have been tightened.

The PMI prepared by IHS Markit for Istanbul Chamber of Industry (ICI) reached 52.6 in March. Although the PMI exceeded 50 points indicating growth in the sector, it saw its lowest level in the last 11 months.

The sub-index indicating new orders in the manufacturing industry saw 47.4 points in April, down from 50.2 in March. The constriction in orders stemmed from the pandemic, according to surveyed manufacturers. The sub-index demonstrating new export orders slightly decreased from 51.4 to 51.2.

The PMI output sub-index also declined from 51.6 to 47.3 in this period.

Job creation of the sector has risen for the 11th successive month; however, the increase saw the lowest level in the last 11 months.

Input and raw material costs sharply rose due to increase in international raw material prices and depreciation in TRY. The companies reflected input price increase on output prices.

“The impact of the current wave of COVID-19 infections on the Turkish manufacturing sector in April was clear. Output and new orders softened as customers held off on committing to projects… Performance in the months to come will likely depend on how quickly infections come down, helping the sector to operate in a more normal environment,” said Andrew Harker, Economics Director of IHS Markit.

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