ISO announced: Limited decline in manufacturing indicator – Last Minute Economic News

ISO announced: Limited decline in manufacturing indicator – Last Minute Economic News

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While the manufacturing industry purchasing managers index (PMI) indicates that operating conditions for manufacturers did not change in March; Production increased, and new orders and employment approached a stable level.

Signs of improvement in demand encouraged companies to increase purchasing activity, but inventories continued to decline. Although inflation rates eased, they remained high.

Manufacturing PMI, compiled by S&P Global for the Istanbul Chamber of Industry (ISO), had reached 50.2 in February. While the Manufacturing PMI decreased slightly in March, taking the value of 50, new orders and employment also recorded a slight improvement and approached the stable level.

PMI values ​​below 50 indicate contraction, while values ​​above 50 indicate growth.

Although new orders increased slightly compared to last month, the slightest increase in nine months was recorded. New orders remained below the threshold value of 50 at 49.6. The slight growth in demand has encouraged some companies to increase production and purchasing activities.

Although inventories remained moderate, both purchases and finished goods decreased at the end of the first quarter. Due to disruptions in the Red Sea, some companies experienced delays in supplying inputs and delivery times were extended for the third month in a row.

While the depreciation of TL against the dollar was an important factor that increased input prices, some companies stated that their raw material costs increased. Although input cost inflation fell to a three-month low, it continued its sharp course.

The production sub-index rose for the second month in a row, reflecting signs of improvement in demand. However, the increase was slight and remained below the level seen in February. Some survey participants noted that difficult economic conditions persist, limiting the scope for production increases. Production decreased from 52.1 in February to 50.1.

Although new orders decreased slightly in March, they approached a stable level at the end of the first quarter. It was stated that increasing prices and uncertainty in the market hinder efforts towards new orders. New orders increased slightly to 49.6 from 49.1 in February.

While new export orders decreased slightly in March, the decline in March was the slightest decline recorded during the nine-month slowdown. New export orders rose slightly to 49.7 from 49.5 in February.

The employment sub-index increased from 48.8 in February to 49.7. Some companies stated that staff numbers had decreased due to resignations and retirements.

Evaluating the PMI data, S&P Global Economy Director Andrew Harker said, “March was a stable month for Turkish manufacturers. While new orders continued to approach the stable level, the improving situation caused slight increases in production and purchasing. If the recent trend in demand continues, it will be in the second quarter of the year.” “We think growth will accelerate,” he said.

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