Turkish factory activity slows down further in April
Workers are seen at a steel factory in the Sakarya province, northwestern Turkey, March 29, 2022. (AA Photo)


Manufacturing activity in Turkey slowed down slightly more in April due to fragile demand, supply pressures and the impacts of the war in Ukraine, a closely watched survey showed on Thursday.

The Purchasing Managers' Index (PMI) for manufacturing declined to 49.2 in April from 49.4 in March, said a panel from the Istanbul Chamber of Industry (ISO) and S&P Global.

The reading thus moved below the 50-point threshold that separates expansion from contraction for the second consecutive month.

Manufacturing production slowed for the fifth month running, albeit to a lesser extent than in March owing to a lack of demand, price pressures and the war in Ukraine.

Firms reported difficulties in securing new business leading to scaling back of output, the survey showed, mainly due to Turkish lira weakness and the Ukraine war.

A combination of rising prices and the war resulted in a slowdown in new export orders during April, the first time since January, the panel showed.

Input costs continued to increase markedly, according to the panel, which in turn reflected onto manufacturers' output prices.

Suppliers' delivery times lengthened amid difficulties securing raw materials contributing to slowdown of purchasing activity, it also said, while firms continued to hire more staff to expand their capacity.

"The business climate facing manufacturers in Turkey was challenging again in April as price pressures remained elevated and supply-chain disruption continued," said Andrew Harker, economics director at S&P Global.

The war smashed exports, which softened for the first time in three months, Harker noted.

"That said, both cost pressures and supplier delays were at the least pronounced since September last year, providing some hope that conditions will become more conducive to growth as this quarter progresses."