Challenges for Turkish manufacturing in Apr despite some improvement

Firms again scaled back employment and purchasing activity, while muted demand conditions contributed to the most pronounced quickening of vendor lead times since the end of 2022.

Meanwhile, inflationary pressures strengthened.

The headline Istanbul Chamber of Industry Turkiye manufacturing purchasing managers’ index (PMI) was unchanged at 47.3 in April, signalling a further solid moderation of the health of the sector.

Business conditions have eased in 13 consecutive months.

Manufacturing output eased for the thirteenth consecutive month in April, with firms reporting challenging international market conditions and subdued demand. Although solid, the latest moderation was less pronounced than that seen in March.

Similarly, both total new orders and new business from abroad eased to lesser extents at the start of the second quarter. Demand conditions remained muted both in the country and abroad.

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.

With demand for inputs muted, manufacturers reported that suppliers quickened their deliveries in April, the second month running in which this has been the case.

Moreover, the latest improvement in vendor performance was the most pronounced since December 2022.

The rate of input cost inflation quickened to the fastest for a year amid currency weakness and higher costs for raw materials in Turkiye. These factors also led to a further rise in selling prices. Here too, the pace of inflation accelerated, reaching the fastest for seven months.

ALCHEMPro News Desk (DS)