PMI manufacturing at 16-month highs
The April 2022 results of the Istanbul Chamber of Industry (ISO) Turkish Manufacturing PMI (Purchasing Managers’ Index) survey, the leading indicator of economic growth, have been announced.
Consequently, the headline PMI, which was 50.9 in March, rose to 51.5 in April, breaking the threshold value of 50 for the fourth consecutive month.
Thus, he stated that the most significant improvement in the sector since December 2021 was recorded.
INCREASE IN ORDERS AND PRODUCTION
In the ISO statement, the strengthening of the demand conditions of many companies in April
As a result, new orders and an increase in production were registered.
“Some respondents noted that the workload has increased due to the continued recovery after the February earthquake,” the statement said. The expansion of production was recorded at the highest rate in the last 20 months.
Backorders increased for the first time in 14 months
Both the increase in new orders and the disruption caused by the earthquake caused the backlog to increase for the first time in 14 months.
Supply chains were the main area where earthquake-related disruptions were directly observed in April, with companies reporting continued difficulties in the supply of raw materials.
Delivery times increased for the fourth consecutive month.
Manufacturers increased purchasing activity for the first time in almost a year and a half, due to increased workloads. Despite this, delays in deliveries prevented the increase in stocks of inputs.
‘THE LOWEST RATE OF INCREASE IN THE PRICES OF FINAL PRODUCTS’
Some companies started the second quarter by increasing their number of employees. However, the layoffs that followed the enactment of the early retirement law caused employment to remain almost stable.
Due to the increase in raw material costs and the weakness of the lira, the sharp increase in input prices also continued in April. Still, the inflation rate fell to the lowest level since the beginning of the year. Some companies attributed this development to declining energy prices. Similarly, the increase in the prices of finished products was the lowest since August 2022.