Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector stood at 46.8 points in April due to a slowdown in new business, according to a closely-watched business survey on Monday.
An Istanbul Chamber of Industry PMI Manufacturing Index report conducted in cooperation with IHS Markit showed a 0.4-point increase in June from May, signaling a challenging business conditions in the sector.
The report said inflationary pressures remained substantial, reflecting a weaker lira.
'Sharp increases in input costs were experienced across the Turkish manufacturing sector as developments in exchange rates fed into overall cost burdens. Average selling prices rose as a result,' the report said.
Panel members blamed demand developments and market conditions for the figure, according to the report.
'Reductions in new orders from both domestic and foreign sources formed the basis for the results in June,' it said.
A reading greater than 50 indicates the sector is growing, while a reading below 50 signals a contraction.
By Tuba Sahin