Turkey: Manufacturing PMI edges down in April following March's jump
May 2, 2017
The Manufacturing Purchasing Managers’ Index (PMI) produced by the Istanbul Chamber of Industry (ICI) and IHS Markit eased slightly from 52.3 in March to 51.7 in April, the second-highest reading since December 2015. Despite the downturn, the PMI still lies above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
The milder improvement in Turkish manufacturing activity was underpinned by solid increases in new orders, output and exports. Although the growth rates were below those seen in March, healthy operating conditions showcase newfound momentum in the manufacturing sector. The rate of expansion in the volume of new orders was the third highest in three years, while output recorded its second best increase in as many years. New export business rose for a fourth month running as global demand continued to pick up steam. The upturn in manufacturing activity also prompted firms to continue increasing their staffing levels. Meanwhile, a strengthening lira throughout April meant inflation, albeit existent, eased to its slowest since last October.
Author: David Ampudia, Economist