Manufacturing PMI remained stable at 49.2 in May and continued to stay at the contractionary area for the 3rd month in a row. Slowdown trend in production reached to the 6th month and in new orders to the 8th month due to the stable demand conditions. New export orders recorded the fastest drop in last 2 years as a reflection of the slowdown in Europe. As employment gains continues, backlogs decreased. Weakness in export
orders supported stock increases. Despite cost side pressures sustain, inflation rates of inputs and final products were lower than the previous month.
Amongst 10 sectors covered in the context of the manufacturing PMI, only basic metals and machinery & metal products sectors’s PMI were below of the critical value of 50 in March. The highest levels of PMI were seen on clothing and leather products, non- metallic mineral products and electrical and electronical products.
Manufacturing PMI indicate that the YoY IP could lose momentum and decrease to negative levels.
Despite the slowdown in manufacturing PMI, Services PUMAX continues to give a robust Outlook.
In May, BIST-100 Index gained 4.8% and BIST Industry Index gained 6.3% whereas the manufacturing PMI continued to stay at the contractionary area for the 3rd month in a row.
In May, Turkey’s manufacturing PMI continued to stay at the contractionary area with China.
Y. F. Securities Research