Turkish industry nears stabilization in May

The situation in the Turkish manufacturing sector improved noticeably in May. This is indicated by the Istanbul Chamber of Commerce and Industry's Purchasing Managers' Index (PMI), which was published by S&P Global. The PMI rose from 47.3 points in April to 49.8 points in May, reaching its highest level since March 2024. Although the value is still just below the growth threshold of 50 points, it signals an almost complete stabilization of business activity in the manufacturing sector, according to S&P Global. Values above 50 points stand for growth, while lower values indicate a decline in economic activity. Export orders provide a boost According to S&P Global, Turkish industry benefited above all from stronger export demand in May. New export orders rose for the first time in 20 months, ending a long phase of declining foreign orders. "The Turkish manufacturing sector performed more positively in May as renewed export growth contributed to a slight increase in production," said Andrew Harker, Economics Director at S&P Global Market Intelligence. Corporate purchasing activity also increased. According to S&P Global, many manufacturers built up their inventories as a precautionary measure to protect themselves against potential supply shortages and uncertainties on international markets. Cost and supply pressure remains high Despite the improvement in demand, companies are still under considerable cost pressure. The survey showed that prices for preliminary services rose significantly again in May. In addition, suppliers' delivery times increased, which points to ongoing strains in international supply chains. According to the companies surveyed, uncertainties in the economic environment and rising prices remain important factors that are curbing demand and willingness to invest. According to S&P Global, whether the positive trend will continue will depend largely on whether overall demand grows more strongly again in the coming months alongside exports. The post Turkish industry nears stabilization in May appeared first on ostwirtschaft.de.