Turkey: Manufacturing operating conditions improve in June
Operating conditions in the Turkish manufacturing sector improved in June for the first time in four months, with the Istanbul Chamber of Industry Turkey Purchasing Managers’ Index (PMI) rising to 53.9 from 40.9 in May. Consequently, the print came in above the neutral 50-threshold that signals an overall expansion from the prior month. Moreover, the data suggests that the economy began to recover at the tail end of the second quarter.
The uptick, which came amid the easing of restrictive measures, was driven by an increase in output; new orders, particularly at home; job creation; and purchasing activity. On the other hand, stocks of purchases dropped as built-up inventory was used to spur production. Turning to prices, lingering currency weakness drove another steep rise in input costs, which was passed on to customers by raising output prices at the fastest rate in three months.
Commenting on the data, Andrew Harker, economics director at HIS Markit, noted: “The severity of the COVID-19 downturn was such, however, that much more will be needed in coming months to recover the output lost during the worst of the pandemic.”