The Istanbul Chamber of Industry (ISO) Turkey Manufacturing PMI (Purchasing Managers' Index) recorded a value of 51.5 in April. The index was recorded as 50.9 in March.
The value recorded in April marked the highest level since December 2021. According to the ISO bulletin on the data, many companies reported an increase in new orders and production as a result of strengthening demand conditions in April. Some survey participants noted that workloads had increased due to the ongoing recovery following the earthquake in February.
In addition, total new business, new export orders, and production growth occurred at a faster pace compared to March. Expansion in production was recorded at the highest rate in the past 20 months.
Both the increase in new orders and earthquake-related disruptions led to an increase in backlogs for the first time in 14 months.
Difficulties in raw material procurement continue
In April, the main areas where disruptions were directly observed due to the earthquake were the supply chains, and companies reported that difficulties in raw material procurement continue. Delivery times have seen an increase for the fourth consecutive month.
Manufacturers have increased their purchasing activities for the first time in about a year and a half due to the increase in workload. However, delays in deliveries prevented an increase in inventory levels. Some companies have started the second quarter by increasing their number of employees.
However, retirements following the early retirement law have resulted in almost stagnant employment.
Due to the increase in raw material costs and the weakness of the Turkish Lira, there has been a sharp increase in input prices in April. However, the inflation rate has dropped to its lowest level since the beginning of the year. Some companies attributed this development to the decrease in energy prices. Similarly, the increase in final product prices has also been the lowest since August 2022.
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