Turkish factory activity contracts in March – PMI

Palestinian-Syrian refugee, Ahmed, 27, works alone in a textile factory in Izmir, Turkey, July 15, 2017. REUTERS/Ekaterina Anchevskaya

Register now for FREE unlimited access to Reuters.com

ISTANBUL, April 1 (Reuters) – Turkish manufacturing activity contracted in March for the first time in ten months as output and new orders slowed, while firms scaled back purchasing activity against the uncertain backdrop of war in Ukraine, a survey showed on Friday.

The Purchasing Managers’ Index (PMI) for manufacturing declined to 49.4 from 50.4 in February, said a panel from the Istanbul Chamber of Industry and S&P Global, slipping back below the 50-point line that separates expansion from contraction.

The war was a leading factor in subdued domestic customer demand, though new business from abroad continued to expand.

Register now for FREE unlimited access to Reuters.com

Input costs remained elevated due to higher raw material prices, while the spike in output cost inflation was among the sharpest on record as firms passed rising manufacturing costs on to customers, the survey showed.

The job creation rate slowed, easing to its weakest in a 22-month sequence of rising employment, while firms pointed to lengthening of suppliers’ delivery times due to difficulties in obtaining materials.

“The Russian invasion of Ukraine adds a further challenge to those faced by Turkish manufacturers at present…,” said Andrew Harker, economics director at S&P Global.

“Already fragile demand was weakened further by the uncertainty caused by the war, while inflationary pressures were exacerbated and supply chains further disrupted.”

Register now for FREE unlimited access to Reuters.com

Reporting by Ezgi Erkoyun; editing by John Stonestreet

Our Standards: The Thomson Reuters Trust Principles.

Source link