Turkey: May manufacturing PMI unchanges at 49.2

According to the data announced by the Istanbul Chamber of Industry (ISO) and S&P Global; Manufacturing PMI remained flat at 49.2 in May. The latest released data pointed to an industry activity index value that remained below the threshold level. While the stable course in demand conditions continued, disruptions in supply chains and inflationary pressures eased. The upward trend in employment continued.

If we look at the details of the PMI data; The slowdown in production continues to be in the foreground. Although the loss of momentum is on a limited trend, the economic slowdown in Europe has compelling effects on new orders. Therefore, although the momentum in total new orders is stable, the decrease in export orders has a suppressive effect. The reduction, albeit slight, of disruption in supply chains, coupled with reduced new orders, enabled companies to face less backlog. While product stocks increased, it was observed that companies continued to increase employment in order to expand their operational capacities.

Although input costs increased rapidly due to the increase in raw material prices and fluctuations in the exchange rate, it was observed that inflationary pressures in the sector eased and the increase in final product prices was lower than in previous months. Disruptions in supply chains have eased considerably compared to April, thus the deterioration in supplier performance has been measured at the most moderate level since September 2020.

As a result; In the last few months, while the external effects of the Russia-Ukraine issue have slowed down the demand on the export side, it is observed that the demand for industrial products and our exports is not general but weaker in some sectors and higher in others. Here, the factors of convenience and convergence in geographical conditions in terms of logistics and supply, which continued the demand for Turkish products throughout the pandemic, were heavily utilized. We will monitor both exchange rate and energy price movements in the sales and costs channel, and the trend here seems to be upwards. In this context, both the economic trend surveys announced in the previous week and the PMI data show a partial slowdown in current conditions. We expect a slowdown in the growth momentum in the coming months.

Kaynak Tera Yatırım
Hibya Haber Ajansı