Turkey: Manufacturing PMI falls in February
The Istanbul Chamber of Industry Turkey Purchasing Managers’ Index (PMI) fell to 51.7 in February from 54.4 in January, which had marked the highest reading in six months. Nevertheless, the index remained above the neutral 50-threshold that separates an overall expansion from contraction in business activity.
February’s drop was largely driven by a moderation in the growth of new orders due to the Covid-19 pandemic. That said, both new export orders and output increased for the second straight month due to improvements in demand. This led firms to continue to hire workers, increasing employment for the ninth straight month. Regarding prices, while costs of raw materials and problems in supply chains again exerted upward pressure on input costs, an appreciation of the currency slowed inflation in both input costs and selling charges.
Andrew Harker, economics director at IHS Markit, commented:
“Although there were signs of softening new order inflows in February, the overall Turkey PMI remained in positive territory as firms shrugged off a pause in new order growth and continued to raise production and employment.”