Turkey: Manufacturing PMI in May improves slightly
June 2, 2016
The Manufacturing Purchasing Managers’ Index (PMI), elaborated by the Istanbul Chamber of Industry (ICI) and Markit, rose from April’s seven-month low of 48.9 to 49.4. Nevertheless, the manufacturing PMI remains below the 50-threshold that separates contraction from expansion in manufacturing conditions.
May’s print mainly reflected smaller declines in output and new orders. Gains in employment deteriorated although the sub-gauge remained in positive territory. ICI analysts added that, “business conditions in the Turkish manufacturing sector remained subdued in May with output and new orders falling further. The weak lira continued to drive up input prices for manufacturers but has failed to stimulate exports so far this year, which fell for the fifth month running in May. Firms continued to de-stock and hiring growth slowed to a crawl, suggesting the near-term outlook remains subdued.”