The manufacturing facility exercise in Türkiye contracted for a second consecutive month in May, primarily brought on by a slowdown in demand that led companies to reduce manufacturing and employment, a survey confirmed on Monday.
The Purchasing Managers’ Index (PMI) for Turkish manufacturing fell to 48.4 from 49.3 in April, in keeping with a survey by the Istanbul Chamber of Industry (ISO) and S&P Global, dropping additional under the 50-point stage that marks progress in exercise.
Firms reported a drop in new orders, together with export orders, as a result of difficult demand situations and excessive costs, the survey confirmed.
The slowdown induced producers to reduce manufacturing and scale back staffing ranges, the survey stated, with some companies reluctant to switch departing employees as a result of decrease workloads.
Inflationary pressures continued to wane final month, as each enter and output costs continued to extend however at a slower tempo, the survey confirmed.
“Latest data suggest that Turkish manufacturers are facing an increasingly challenging operating environment, with new work seemingly harder to come by,” Andrew Harker, economics director at S&P Global Market Intelligence, stated.
“One light on the horizon comes in the form of softening inflationary pressures, however. Given the still detrimental impact high prices are having on demand, an easing of these pressures will hopefully help lead to a recovery in the sector over the second half of the year.”
Source: www.dailysabah.com