Turkish factory activity growth gathers pace in April -PMI
2023.05.02 03:59
© Reuters. FILE PHOTO: Workers produce face masks as the demand for their production rapidly increased and struggles to meet orders, at a Turkish manufacturer’s facility in Istanbul, Turkey, January 30, 2020. REUTERS/Umit Bektas
ISTANBUL (Reuters) – Growth in new orders and output helped Turkish factory activity expand at a faster pace in April, as the sector continued its recovery in the wake of massive earthquakes in early February.
The Purchasing Managers’ Index (PMI) for manufacturing rose to 51.5 last month from 50.9 in March, staying above the 50-point line that separates expansion from contraction, the Istanbul Chamber of Industry and S&P Global (NYSE:) said.
Stronger demand led to an increase in new orders and output, the panel said, with some respondents indicating rising workloads amid the rebound from the Feb. 6 earthquakes.
“The recovery in the Turkish manufacturing sector gathered momentum in April, with gains in new orders and output solidifying and prompting a renewed increase in purchasing activity,” said Andrew Harker, Economics Director at IHS Markit.
Backlogs of work increased for the first time in 14 months due to a combination of higher new orders and disruption from the earthquake, S&P Global said.
Supply chains were still disrupted after the earthquakes as firms reported difficulties in obtaining materials, the survey showed, with delays preventing a rise in stocks of purchases.
Although some firms took on staff, the number of retirements due to a new law kept employment levels broadly unchanged in the manufacturing sector, the panel said.
Lira weakness and high material costs caused input prices to rise sharply and manufacturers increased their output prices as well, albeit at the softest rate since August 2022, the panel said.
