Turkey: Manufacturing PMI hits almost six-year low in March
April 2, 2015
The HSBC Manufacturing Purchasing Managers’ Index (PMI) inched down from 49.6 in February to 48.0 in March. As a result, the PMI now lies slightly further below the 50-threshold that separates expansion from contraction in manufacturing conditions. In addition, the print marked an almost six-year low.
March’s fall reflected decreases in four of five components of the index. Both new orders and output fell for the third consecutive month. In addition, employment, which had remained a bright spot output, stagnated after 69 consecutive months of growth. Input prices rose to a year high on the back of a weaker lira. HSBC analysts pointed out that, “[t]he March survey results suggest that February’s downturn in the Turkish manufacturing sector was more than just a weather-related blip […] Official industrial production declined 2.2% year-on-year in January, and the PMI Output Index suggests this negative trend will continue over the rest of the quarter.”