Turkiye's manufacturing sector continues improvement in June: Report

The main positive was a solid and accelerated rise in manufacturing production. Output was up for the fourth month running, with the rate of growth the fastest since July 2021. Alongside improvements in demand, firms also attributed the latest rise in production to an ongoing recovery from the earthquake and a pick-up in activity following the election period.

While new orders rose for a fourth straight month, the rate of increase was only marginal and the softest in the current sequence of expansion. The slowdown in growth was partly reflective of a depreciation of the Turkish lira against the US dollar, anecdotal evidence showed, as per S&P Global’s Istanbul Chamber of Industry Turkiye PMI report.

Exchange rate fluctuations also contributed to re-accelerations in both input cost and output price inflation in June after sustained slowdowns in previous months. Input prices increased at the fastest pace in just under a year, while charges were up to the greatest extent since February.

Meanwhile, suppliers' delivery times lengthened markedly as vendors struggled to respond to increasing demand for inputs. Accordingly, firms used existing holdings of items to support production, leading to a reduction in stocks of purchases.

Job creation was signalled for the second month running in response to greater production requirements. The rate of expansion was modest, but slightly faster than that seen in May. Backlogs of work increased, however, for the second time in the past three months.

Fibre2Fashion News Desk (DP)