International Home Textile Magazine April 2019

62
HTE
EVENTS
Manufacturing index climbs to
8-month high
The Purchasing Managers’ Index for the Turkish manufacturing
sector was 47.2 points in March, the highest figure since
July 2018, according to a report released by IHS Markit, a
leading financial analysis company.
IHS Markit report drawn up from data from an Istanbul
Chamber of Industry PMI Manufacturing Index showed a
0.8-point advance from the previous month, inching closer
to stabilization.
Turkey’s PMI for the manufacturing sector is seen as an
important gauge in tracking the health of the sector, with
values below 50 points showing contraction while above
indicates expansion.
While operating conditions have now moderated on a
monthly basis throughout the last year, the latest slowdown
was weaker than the average over this sequence, the report
said. Due to the improvement in demand observed by some
survey participants, the slowdown in production was at the
lowest rate in the last eight months. However, challenging
market conditions continued, leading to a slowdown in new
orders. New export orders also saw a slowdown, while firms
stated that there was a weakness especially in the European
market.
Evaluating the data, Andrew Harker, associate director of
IHS Markit, said the slowdown in both production and employment
at the lowest rate observed since mid-2018 shows
that there is light at the end of the tunnel for the Turkish
manufacturing sector. He stressed that while receiving new
orders continues to be one of the most important challenges
due to the weak course of demand, the sector seems to
be closing in on gaining stabilization in general.
Citing that securing new orders remains a key challenge for
firms amid ongoing “demand difficulties,” Harker said the
sector in general looks to be moving toward stabilization.
April 2019