Turkey’s manufacturing activity contracted for the first time in ten months in March, led by slowdowns in output and new orders in the backdrop of lower demand, high prices and the impact of the war in Ukraine, survey results from S&P Global showed on Friday.
The headline Istanbul Chamber of Industry Turkey manufacturing Purchasing Managers’ Index fell to 49.4 in March from 50.4 in February. Any reading below 50.0 indicates deterioration in the sector.
Output and new order growth eased for the fourth and sixth consecutive months in March. The war in Ukraine and high inflationary pressures led to the subdued demand.
Total new orders moderated in March, while new business from abroad increased further amid a rise in international demand.
The rate of job creation eased to the weakest in the current twenty-two months sequence of rising employment.
The rate of input cost inflation eased to the lowest in five months, but remained strong. The rise in the rate of output price inflation was among the sharpest on record.
Suppliers’ delivery time lengthened in March and backlogs of work depleted to the greatest extent in nearly a year.
“The Russian invasion of Ukraine adds a further challenge to those faced by Turkish manufacturers at present, and impacted the sector in a number of ways during March,” Andrew Harker, economics director at S&P Global, said.
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