TODAY’S – Turkish PMI dips to lowest in 63 months

Turkish PMI dips to lowest in 63 monthsThe Turkish manufacturing industry’s Purchasing Managers’ Index (PMI) dipped to its lowest point since April 2009 in July, indicating a further deterioration in the overall business climate, a business survey showed on Friday.HSBC’s PMI for Turkey fell to 48.

5 in July, a survey from the bank revealed on Friday. The PMI for Turkey had been at a level of 48.

8 in June.New orders received by Turkish manufacturers fell for the third month running in July.

That was the longest sequence of deterioration in over five years, and the rate of decline in the latest period was the fastest since August 2011.According to the HSBC PMI survey’s data, Turkish manufacturing output, new orders, exports, backlogs and purchasing activity all declined in July.

Employment in the manufacturing sector continued to rise, but little changed from the weak rates posted in May and June, the survey showed. Inflation slowed down for the sixth consecutive month, since hitting a 34-month record at the start of the year, to the weakest since May 2013.

The rate of contraction was unchanged from June, contributing to the fastest drop in input inventories since December 2012, the survey said.Firms polled in the HSBC survey generally linked falling order inflows to stagnant market conditions and geopolitical uncertainty, notably in the Middle East.

New export business also declined for the first time since July 2013.The HSBC said falling new business had led to a sharper decline in backlogs of work in July.

Backlogs declined for the fifth month running and at the fastest rate since August 2013, it said.HSBC economist Melis Metiner said in a written note: “We expect output growth to slow in June and in Q3, then pick up slightly in Q4.

As a result of the CBRT’s [Turkish Central Bank’s] recent policy easing, there are early signs that domestic demand growth is accelerating. Credit growth has strengthened, and import growth in Q2 was stronger when compared to Q1.

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SOURCE: Today’s Zaman