Turkey’s Manufacturing Sector Contracts For First Time in a Year

Turkey’s manufacturing output contracted in May as lockdowns designed to curb the spread of COVID-19 were in place for most of the month, according to IHS Markit.

• The Istanbul Chamber of Industry Turkey Manufacturing PMI fell to 49.3 in May, falling below the 50.0 threshold that separates expansion from contraction.
• This compares with 50.4 in April, and the first time it fell below the threshold in a year.
• Moderations were recorded in both output and new orders due to the COVID-19 lockdown and the associated softened demand.
• New export orders slowed to end a four-month streak of growth, while the rate of job creation fell to a one-year low.
• Firms continued to boost their workforce numbers throughout the second quarter, but were affected by the restriction put in place.
• Economics Director Andrew Harker said problems in supply chains seem to be less transitory in May as they remained widespread and contributed to strong inflationary pressures.