Turkish manufacturing PMI falls below threshold level in March

ANKARA

Turkiye’s Purchasing Managers’ Index (PMI) for the manufacturing sector fell below the threshold level for the first time in 10 months, according to a closely watched business survey on Friday.

The index hit 49.4 in March, down from 50.4 in February showed London-based global data firm IHS Markit’s monthly report, prepared in collaboration with the Istanbul Chamber of Industry.

PMI for the manufacturing sector is seen as an important gauge in tracking the health of the sector, with values below 50 points showing contraction while above indicates expansion.

Andrew Harker, the economics director at IHS Markit, pointed out that Russia's war on Ukraine, which started on Feb. 24, has added more pressure on the Turkish manufacturing sector.

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

Output and new orders moderated for the fourth and sixth successive months, respectively, in March.

New business from abroad continued to rise amid some improvements in international demand, the report said.

The rate of job creation also slowed, easing to the weakest in the current 22-month sequence of rising employment.