Turkish manufacturing sector's contraction slows in April

By Mucahithan Avcioglu

ISTANBUL (AA) - Türkiye’s manufacturing sector saw a contraction in April, with sustained but slower moderations in output and new orders.

According to data released by S&P Global on Friday, Türkiye's manufacturing purchasing managers' index (PMI) was unchanged at 47.3 in April, again marking the lowest reading since last October.

A reading above 50 points signals an overall expansion in the manufacturing sector, while a reading below that level means contraction.

Output eased for the 13th consecutive month in April, with firms reporting challenging international market conditions and subdued demand.

"With new orders slowing, manufacturers scaled back employment and purchasing activity, extending the current periods of moderation to five and 12 months respectively. Inventories were also reduced," it said.

During April, with demand for inputs muted, suppliers accelerated their deliveries for a second consecutive month.

Meanwhile, the rate of input cost inflation quickened to the fastest in a year amid currency weakness and higher costs for raw materials.

These elements contributed to an additional increase in selling prices. Inflation rose here as well, hitting its highest level in seven months.

"An uncertain international economic environment added to the challenges facing Turkish manufacturers in April. As such, further moderations in new orders, output and exports were recorded by the latest PMI survey," said Andrew Harker, economics director at S&P Global Market Intelligence.

"That said, there were some signs of improvement, raising hopes that the sector could potentially move closer to growth territory in the months ahead," he added.