ISTANBUL: Turkish manufacturing activity slowed in April to its lowest rate in seven months, driven by declines in output, new orders and exports, a survey showed on Monday, suggesting business conditions continue to deteriorate.
The manufacturing Purchasing Managers' Index (PMI) fell to 48.9 last month from 49.2 in March, survey data from the Istanbul Chamber of Industry and Markit showed. That was the lowest reading since September, and below the 50.0 mark that separates expansion from contraction.
Following four months of expansion, Turkish manufacturing output shrank for the second consecutive month in April. New orders also declined for the second month, after expanding for four months.
New exports fell, while production also contracted for the second month. The only positive development was in employment. It rose slightly in April.
"Turkish manufacturing started Q2 on a weak footing, with the PMI showing steeper falls in both output and new orders amid worsening export demand," said Trevor Balchin, senior economist at Markit.
"The latest PMI data provide a further warning sign that the official growth rate of industrial production - currently updated only to February - will begin to slow in the coming months."
Manufacturing input prices rose further in April, with 20 percent of survey respondents reporting greater cost pressures than they had a month previously.
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