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Company News

Turkish manufacturing activity grows in October-PMI

ISTANBUL, Nov 2 (Reuters) - The Turkish manufacturing sector grew in October for the fifth straight month, a business survey showed on Monday, with recovering demand bringing sharp upticks in orders and output.

The headline PMI rose to 53.9 in October from 52.8 in September, according to survey data from the Istanbul Chamber of Industry and IHS Markit, remaining above the 50 mark that separates expansion from contraction.

The rate of job creation accelerated to the fastest in almost three years, the panel said, as firms expanded production volumes to catch up with new orders.

Stocks of inputs decreased amid the use of items in the production process and difficulties obtaining materials, the panel said, with businesses citing supply chain delays when sourcing inputs from abroad.

Sharp rises in both input costs and output prices were observed due to lira currency weakness in October, it said.

“Firms continued to ramp up staffing levels to support output, suggesting a confidence that the recovery is sustainable. In fact, IHS Markit now expects industrial production to fall just 0.8% over the course 2020,” said Andrew Harker, economics director at IHS Markit.

“This positive picture is all in spite of ongoing currency weakness which is causing inflationary pressures to build.” (Writing by Ezgi Erkoyun; Editing by Toby Chopra)

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