ISTANBUL, Oct 1 (Businesshala) – Turkish factory activity rose for the fourth straight month in September as production and new orders continued to take off and companies hired more workers, a survey showed on Friday.
Growth in activity was slightly slower than the previous month, with the Purchasing Managers’ Index (PMI) for manufacturing in Turkey falling to 52.5 in September from 54.1 in August, data from the Istanbul Chamber of Industry and IHS Markit showed.
Reading above 50 leads to an increase in activity.
The panel said that continued growth in output and orders indicated that trading conditions have strengthened for another month. Despite the increased capacity, the firms indicated accumulation of work backlogs for the first time in 14 months.
It also said that capacity expansion efforts prompted firms to increase their staffing levels at a solid pace, while manufacturers also ramped up their procurement activity to suit higher production requirements.
The panel showed some signs that supply-chain delays eased, however, input costs continued to rise sharply, leading to further increases in output prices.
“Turkish producers were able to build on the recent rebound in output and new orders … Rising new orders have begun to put pressure on operational efficiencies, despite the fact that firms continue to lay off additional staff,” Andrew Harker, economics director, told IHS Markit.
“There were some indications that supply-chain disruptions are not as pronounced as before, but firms still face longer lead times and sharp price increases while attempting to secure inputs. These As part of efforts to hedge against problems, the buyout stock has been increased to the largest extent since the end of 2017.” (Written by Ezzie Erkoyan; Editing by Susan Fenton)