Turkey: Manufacturing gauge tumbles in June reaching nearly three-year low
July 1, 2014
The HSBC Manufacturing Purchasing Managers Index (PMI) fell from 50.1 in May to 48.8 in June, which represented the lowest level since August 2011. As a result of the fall, PMI is below the 50-threshold that separates expansion from contraction in business conditions for the first time since July 2013.
According to HSBC, June’s figure reflected a deterioration in four of the five components of the index with the output category falling to its lowest level since April 2009. Only employment in the manufacturing sector remained at the previous month’s level. Meanwhile, input prices continued to rise on the back of the weak lira. HSBC stated that, “the June PMI data points to continued slowdown in manufacturing sector growth,” and that, “even though Q1 production growth was stronger than expectations, recent PMI readings point to a significant slowdown in Q2 and even Q3.”