According to the data announced by the Istanbul Chamber of Industry (ISO) and IHS Markit; Manufacturing PMI declined from 52.6 to 50.4 in April. The manufacturing PMI index, which was 33.4 due to the economic recession caused by Covid-19 in April last year, recovered in the following months and reached a growth position as of June. The index, which slowed down in April, reflects the effects of the re-acceleration of the Covid-19 pandemic. The index remained in a growth position for 11 months after June.
If we look at the details of the PMI data; production and new orders lost momentum, affected by the increase in the number of Covid-19 cases in Turkey. Even if this effect is not comparable to the contraction caused by the closure in April and May of last year, it seems that the epidemic measures caused a partial slowdown. While total new orders contracted, export orders increased with the signals of strengthening external demand. Employment in the manufacturing industry continues to increase, albeit with a slowdown compared to the previous months. Inflationary pressures continue as input costs and final product prices have increased significantly. Factors such as shortages in raw material supply, increasing costs, freight, high supply-based pricing are effective in this inflationary pressure. This situation also affects the price of products sold in an upward direction.
Although the effect of Covid restrictions is not directly felt in the industry, it is seen that there is a loss of momentum for the previous months. These effects are indirect in the framework of the reflection of the stagnation in the market on the orders and the reflection of the slowdown in the orders to the production. A certain effect can also be felt during the closing period. In the next period, it will be important to reduce the number of cases, make openings and improve vaccination. The business capacity of a manufacturing sector that has survived the epidemic conditions will be positively affected. Currently, the degree of business activity is better than this time of last year, but lower than in the previous 3 months.
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Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı