Turkish factory activity shrinks for fourth straight month in July

Turkish factory activity shrinks for fourth straight month in July

ANKARA - Reuters
Turkish factory activity shrinks for fourth straight month in July

Turkish manufacturing activity contracted for the fourth consecutive month in July as new orders and output slowed, a business survey showed on Aug. 1.

The manufacturing Purchasing Managers’ Index (PMI) rose to 49 from 46.8 a month earlier, staying below the 50-point line that separates expansion from contraction, a panel from the Istanbul Chamber of Industry and IHS Markit said.

New orders in Turkey’s goods-producing sector fell as a result of tough market conditions, while output also continued to slow down, the panel said, adding that foreign demand had strengthened after two consecutive months of slowdown.

Commenting on the Istanbul Chamber of Industry Turkey Manufacturing PMI survey data, Gabriella Dickens, Economist, IHS Markit, said:

“The headline figure suggested that challenging business conditions continued in the Turkish manufacturing sector during July, though the slowdown moderated. On a positive note, export orders and employment increased, partially offsetting slowdowns in total new orders and output. Inflationary pressures sharpened further with output price inflation rising to a 12-year high.”

Turkish economy, PMI, Manufacturing