Turkey's manufacturing index at 48.9 points in April

By Tuba Sahin

ANKARA (AA) - Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector stood at 48.9 points in April, according to a closely-watched business survey on Wednesday.

IHS Markit’s monthly purchasing managers’ index report -- prepared in collaboration with the Istanbul Chamber of Industry -- signalled more challenging business conditions in the Turkish manufacturing sector.

The index showed a 1.9-point decrease from the previous month.

Panel members reported that market fluctuations were a key factor behind the modest slowdown, according to the report.

"Underpinning this development were decelerations in total new orders and staff hiring, although output and export orders continued to increase," it said.

The latest PMI report revealed firms slowed down their recruitment and purchasing activities due to deceleration in new orders at the beginning of the second quarter.

However, the output continued to increase in the sector despite the slowdown in new business.

"Anecdotal evidence largely pointed to new investments as the driving force behind the rise," it said.

The report added that orders from abroad had expanded and were sustainable, thanks to a strong global economic environment.

According to the report, inflationary pressures remained strong in the manufacturing sector in April.

"The depreciation of the lira contributed to a sustained rise in input prices during April," the report read.

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