PMI retreats from 22-month high to 47.9 in March: Survey

ISTANBUL

After hitting a 22-month high of 49.3 in February, the headline Istanbul Chamber of Industry Türkiye manufacturing PMI dropped to 47.9 in March, its lowest in five months, S&P Global said on April 1.

Any figure greater than 50 indicates overall improvement of the sector.

The rate of moderation in manufacturing new orders regained momentum during March as the war in the Middle East contributed to intensifying inflationary pressures and dampened demand, according to the closely-watched survey.

“In turn, firms scaled back production, employment and purchasing activity. The war also caused supply-chain delays, with suppliers' delivery times lengthening to the largest extent in over a year-and-a-half,” it added.

March data pointed to sharper slowdowns in both total new business and new export orders, in some cases linked to the impact on market demand of the uncertainty caused by the war in the Middle East, said the survey.

The Turkish manufacturing sector suffered something of a setback in March, after conditions had looked to be on the path to becoming more favorable in February, commented Andrew Harker, economics director at S&P Global Market Intelligence.

“The near term fortunes of the sector will likely depend on how long the conflict persists and the ramifications for global price and supply conditions,” said Harker.