PMI rises to 54 as relaxation of virus-driven restrictions positively affect demand, production, says survey
Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector rose to 54 in July, hitting a six-month high, a monthly business survey revealed on Monday.
The PMI increased by 2.7 points from 51.3 in June, according to the report by the Istanbul Chamber of Industry prepared in collaboration with the London-based global data firm IHS Markit.
The main driver behind this rise was the relaxation of COVID-19 restrictions, which positively affected demand and production.
While the apparel and leather products sector continues to lead growth, a revival was also seen in the food, electrical and electronic products, and chemicals sectors, the report underlined.
“Among the sectors in which production slowed down, the sharpest decrease was in the land and sea vehicles sector,” it added.
Manufacturing PMI is a composite single-figure indicator, and any figure greater than 50 indicates an overall improvement of the sector, the report underlined.
Commenting on the PMI data, Andrew Harker, Economy Director of IHS Markit, said it indicates that an improvement in customer demand with the relaxation of COVID-19 restrictions “positively affected manufacturers and new orders have increased across the industry.”
Firms have shown their ability to recover quickly, and they seem to be on track to do something similar again, he noted.
“The acceleration of employment and purchasing activities helps companies meet their increasing workloads. On the other hand, the rise in the number of coronavirus cases raises concerns that growth plans may be adversely affected in the coming months.”