Turkish manufacturers upbeat about business outlook

The Turkish manufacturing sector feels positive about the business outlook with regard to output growth, export sales and capital expenditure (capex) plans despite financing challenges, said a report by London-based global data company IHS Markit yesterday.

The Turkey Industrial Outlook report, prepared in collaboration with the Istanbul Chamber of Industry, shows that 55 percent of Turkish manufacturers surveyed by IHS Markit expected a rise in production volumes for the year ahead.

"At 45.4 percent in March, the resulting net balance signals widespread confidence regarding output prospects in the next 12 months among goods-producers," it said.

The report revealed that industrialists also expected their profits to increase but are concerned about higher costs of imported raw materials.

"Turkish manufacturers are generally upbeat about access to finance (net balance 21.0 percent), although respondents note concerns about the cost of finance," the report read.

Tim Moore, associate director at IHS Markit, said that higher export sales and rising domestic consumer spending are expected to drive output growth.

"Manufacturers are backing up their positivity towards the demand outlook by looking to increase research and development budgets and digitization spending," Moore said.