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Company News

Turkish manufacturing activity eases from nine-year high in August -PMI

ISTANBUL, Sept 1 (Reuters) - The recovery in Turkey’s manufacturing sector continued in August, a survey showed on Tuesday, with expansion easing from a nine-year peak as improvements in customer demand supported increases in output and new orders.

The headline PMI declined to 54.3 in August from 56.9 in July, according to survey data from the Istanbul Chamber of Industry and IHS Markit, remaining above the 50 mark that separates expansion from contraction.

Customer demand has increased in recent months as COVID-19 restrictions were eased, the panel said, adding that new orders rose at a pace that was among the fastest in the past 2-1/2 years. New exports and production also increased.

Companies increased purchasing activity and employment in August in line with higher output and new orders, it said.

The depreciation of the lira has led to higher input costs and, as a result, output prices, the panel said. Input cost inflation rose to its strongest since October 2018, leading companies to raise their selling prices to the greatest extent in 23 months.

“Turkish manufacturers were able to largely sustain the strong pace of growth seen in the previous month during August, with the latest PMI data suggesting that the sector continued to make inroads into the output lost during the COVID-19 downturn,” said Andrew Harker, economics director at IHS Markit.

“Helping firms to expand output further was another month of job creation. Less positive were signs of building inflationary pressures, with both input costs and output prices rising at the sharpest rates for just under two years.” (Reporting by Ali Kucukgocmen; Editing by Catherine Evans)

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