Turkey: Manufacturing sector gauge higher in July

By Tuba Sahin

ANKARA (AA) - Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector reached 49 points in July, suggesting that challenging business conditions continued, according to a closely watched business survey released on Wednesday.

An Istanbul Chamber of Industry PMI Manufacturing Index report conducted in cooperation with London-based global data company IHS Markit rose 2.2 points last month from June.

"At 49.0 in July, up from 46.8 in June, the headline figure signaled further challenging business conditions in the Turkish goods-producing sector, as output and new orders continued to slow," the report said.

A reading greater than 50 indicates the sector is growing, while a reading below 50 signals a contraction.

"However, the health of the sector slowed down only marginally and at the weakest rate observed across the current four-month slowdown," it said.

The report added that new export orders and employment in the sector increased and partially offset deceleration in total new orders and output.

It also said inflationary pressures strengthening in the sector amid a weaker lira pushed input prices up significantly.

"In fact, input price inflation recorded the fastest pace since June 2006. Consequently, output price inflation sharpened to a 12-year high," it said.