Turkey: Manufacturing PMI falls into contractionary territory in June
July 2, 2015
The Markit Manufacturing Purchasing Managers’ Index (PMI) dropped from 50.2 in May to 49.0 in June. May’s result had marked a five-month high. As a result, the PMI now lies below the 50-threshold that separates expansion from contraction in manufacturing conditions.
June’s drop reflected a steeper decline in manufacturing output. In addition, new orders recorded the sixth consecutive drop. In fact, in June, the rate of contraction was steeper compared to the previous month’s drop as firms reported increased uncertainty following the general elections. Moreover, new export business recorded a decline, despite the weak currency. HSBC analysts pointed out that, “manufacturers also continue to face higher input costs as a result of the weak lira. Recent PMI data suggest that official IP growth will turn down in the coming months.”