Turkish manufacturing activity ticks up in February

Marco Green
March 3, 2019

Economists in a Reuters poll had expected the sector to fall below the 50-mark that separates expansion and contraction, at a reading of 48.5 points.

The Caixin/Markit PMI for manufacturing activity, released on Friday, stood at 49.9, compared with 48.3 in January, with sub-indexes of output and new orders returning to the expansionary territory.

"Indeed, we expect growth to continue to come under pressure until the middle of this year".

The readings - closely watched by investors as an alternative to the official data and more focussed on smaller firms - offered further evidence China's economy is losing momentum and suggests the U.S. -Sino trade war will continue to weigh on exports as prospects for a trade deal remain uncertain.

Economists, led by Helen Qiao, from the Bank of America Merrill Lynch predicted that policymakers were likely to announce during the National People's Congress sessions that start next week a significant increase in the quota for local government special bond issuance.

Nikkei's PMI, which measures manufacturing performance, recorded 47.6 in February, down from 47.9 in January.

According to the PMI report, the latest figure was consistent with a robust improvement in business conditions that was stronger than seen on average over the 14-year survey history.

"The rise in the Irish index was driven by stronger growth in output and new orders, with firms reporting a pick-up in both domestic and worldwide demand, most notably from the U.S. and UK", AIB's chief economist Oliver Mangan said.

Domestic manufacturing demand improved significantly, and foreign demand was not deteriorating as quickly as a year ago.

The pressure on manufacturers' access to capital has become obvious again, meaning the financing environment has not yet eased, Zhong added.

The degree of optimism among businesses also slipped from January's eight-month high.

Other reports by Click Lancashire

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