Turkey: Manufacturing sector gauge lower in May

By Tuba Sahin

ANKARA (AA) - Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector stood at 46.4 points in May due to slowdown in new orders, according to a closely-watched business survey on Friday.

An Istanbul Chamber of Industry PMI Manufacturing Index report conducted in cooperation with IHS Markit showed a 2.5-point decline from the previous month, signaling a challenging business conditions in the sector.

"Survey respondents generally linked the decline to a lull in demand and market fluctuations," it said.

"Unfavorable" exchange rates led inflationary pressures to rise in the Turkish manufacturing sector, according to the report.

It showed that manufacturers eased down their purchasing activity and employment in May.

However, businesses were able to work through their backlogs during May, the report noted.

"Lower volumes of orders alleviated pressure on capacity, according to panel members," it said.

Turkey's PMI for the manufacturing sector is seen as an important gauge in tracking the health of the sector, with values below 50 points showing contraction while above indicates expansion.