The Turky manufacturing sector extended its downturn for
the fourth consecutive month in April, hovering near a six-year low as exports and new orders
continued to fall.
Output, new orders and new export
business all fell for the fourth successive month with the latter posting a
faster rate of decline. Manufacturers input stocks declined as purchasing fell,
but inventories of finished goods built up, read a statement by HSBC Turkey
Manufacturing PMI.
The PMI remained below the no-change mark for the fourth successive month
in April, indicating an ongoing downturn in the Turkish goods-producing sector.
The PMI rose from March’s 71-month low of 48.0 to 48.5, but the latest figure
was still the joint-second lowest since April 2009. Three of the PMI’s five
components weighed on the headline figure during the month, the exceptions
being employment and suppliers delivery times.
The rate of contraction eased slightly since March, but remained solid. New export contracts fell at the fastest rate in six years, despite the weakening lira-dollar exchange rate. Trevor Balchin, Senior Economist at Markit stated that the latest PMI data signal an entrenched downturn in the Turkish manufacturing sector with output, new orders and exports all falling for the fourth consecutive month. The latter showed the steepest drop in six years, despite the weak lira-dollar exchange rate.
Turkish goods producers face the unenviable combination of falling demand and rising inflation, with average input prices increasing at the fastest rate since March 2014. The weak currency was again widely blamed for the latest build-up of inflationary pressure, he said.
In line with the trend had shown for new work, production declined for the
fourth month running in April, while the rate of contraction was unchanged from
March’s near-six-year record. Survey data also signaled a lack of pressure on
operating capacity, as backlogs of work declined for the 13th time in 14
months, read the statement.
Stocks of purchases held by Turkish manufacturers declined in April, reflecting a drop in input volumes. Conversely, stocks of finished goods rose for the third month running, the longest sequence of growth in more than three-and-a-half years.
Source: hurriyetdailynews