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Turkish manufacturing activity returns to growth in…

ISTANBUL, July 1 – Turkish manufacturing activity expanded in June for the first time since February, as restrictions to curb the spread of the coronavirus were eased, a survey showed on Wednesday.

The Purchasing Managers’ Index (PMI) for manufacturing rose to 53.9 last month from 40.9 in May, according to survey data from the Istanbul Chamber of Industry and IHS Markit, passing above the 50 mark that separates expansion from contraction.

Output, new orders and employment all increased, while rises in input costs and output prices were also recorded.

Production volumes expanded markedly as Turkey took steps to lift most pandemic restrictions, while new orders also returned to growth.

Higher output requirements led to increases in employment and purchasing, while delivery times lengthened to one of the greatest extents in the survey’s history, underlining disruptions to the supply chain.

Currency weakness contributed to a further sharp monthly rise in input costs, which were passed on to customers as increased selling prices, respondents said, while output charges rose at the fastest pace in three months.

“The recovery in the Turkish manufacturing sector gathered momentum in June, with a number of the variables from the survey back in expansion mode,” said Andrew Harker, economics director at IHS Markit.

“The severity of the COVID-19 downturn was such, however, that much more will be needed in coming months to recover the output lost during the worst of the pandemic. We would hope therefore to see growth strengthen further in the months ahead.”

– Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.

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For further information, please phone IHS Markit on +800 6275 4800 or email [email protected]

(Reporting by Ali Kucukgocmen; Editing by Catherine Evans)

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