Turkey: Manufacturing PMI enters expansionary territory in May
June 1, 2015
The HSBC Manufacturing Purchasing Managers’ Index (PMI) inched up from 48.5 in April to 50.2 in May. As a result, the PMI now lies above the 50-threshold that separates expansion from contraction in manufacturing conditions. In addition, May’s result marked a five-month high.
May’s rise reflected increases in employment and suppliers’ delivery times as well as a slower pace of contraction in both output and new orders compared to the previous month. New orders decreased for the fifth month in a row, however at a more moderate pace. Export orders fell as well, however at a marginal rate. The firms surveyed stated that the fall in new orders was linked to weak market conditions and increased uncertainty related to the June elections. HSBC analysts pointed out that, “May’s survey of Turkish manufacturers signaled a broad stabilization in business conditions. The rise in the PMI above 50.0 and further job creation were the main positive findings, while new orders and output fell at the slowest rates in 2015 so far. Inflationary pressures remained strong, however, linked to the weak lira.”