Turkey: Manufacturing PMI remains stuck in negative territory in June
July 2, 2018
The Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, rose slightly from 46.4 in May to 46.8 in June. Despite the uptick, the index remained below the crucial 50-point threshold that separates expansion from contraction in the manufacturing sector for the third consecutive month.
The marginal increase in the index came on the back slightly softer falls in output and new orders. New orders declined both at home and abroad, while employment continued to fall. Input price inflation was once more elevated in June, driven by the weaker exchange rate, with firms passing higher prices on to consumers as a result. Central Bank figures showed that the manufacturing sector’s capacity utilization rate rose slightly from 77.9% in May to 78.3 in June.
Author: Oliver Reynolds, Economist