In May, the SAMEKS Composite Index, free of seasonal and calendar effects, decreased by 1.4 points from the previous month to 51.7.
According to the study conducted by MUSIAD Economic Political and Social Research Unit, the service sector index decreased by 1.4 points from the previous month to 51.5, while the industrial sector index decreased by 2.3 points to 49.9 compared to the previous month.
The statement said:
“Input purchases continued their strong course in the service sector, where the stagnant business volume continued. In the industrial sector, it is seen that the ongoing loss of momentum in new orders negatively affects production. As a result of these developments, the SAMEKS Composite Index, which decreased by 1.4 points to 51.7, lost momentum compared to the previous month, but continued its course above 50 reference values, indicating that the growth in the real sector continued.”
Industrial Sector SAMEKS Index
Industrial Sector SAMEKS Index, free of seasonal and calendar effects, decreased by 2.3 points in May 2021 compared to the previous month and has fallen to 49.9.
The decrease of new orders to 49.1, down 0.7 points from the previous month, was instrumental in the decline observed in the industrial sector during this period.
Accordingly, production across the sector also declined rapidly, decreasing by 6.8 points from the previous month to 40.0.
In May, purchases decreased by 8.9 points, while the sub-index continued to increase with 53.1 points, maintaining its course above the reference value.
The final goods inventory sub-index, which decreased by 0.8 points compared to the previous month, stood at 46.2, while the suppliers’ delivery time sub-index increased by 4.9 points to 58.9.
During this period, labor demand growth continued throughout the industrial sector, which began in January, and the employment sub-index increased by 1.7 points to 61.4.
With these developments, the Industrial Sector SAMEKS Index decreased by 2.3 points compared to the previous month to 49.9, thus ending the 5-month increases in the sector with the period of May.
Service Sector SAMEKS Index
Sameks Service Sector Index, free of seasonal and calendar effects, decreased by 1.4 points in May 2021 compared to the previous month to 51.5.
The volume of business related to the service sector decreased by 0.9 points compared to the previous month and stood at 44.3.
Input purchases, which indicated a small loss of momentum compared to the previous month with a decrease of 0.2 points, continued their positive outlook during this period by being at 64.0 points.
During this period, the final goods stock sub-index decreased by 5.1 points from the previous month to 46.7, while the suppliers’ delivery time sub-index lost 1.9 points of momentum but continued to increase at 54.5.
Although it lost 1.6 points compared to the previous month, the employment sub-index of 51.5 showed that labor demand continued to be positive throughout the service sector.
Thus, the Service Sector SAMEKS Index, which was 51.5 despite a decrease of 1.4 points compared to the previous month, continued its course above the reference value for the 7th month in a row.
SAMEKS, which had a positive start to the second quarter of the year with the increase in April, indicates that there has been a loss of momentum in the real sector as of May. The restrictive effect of the 17-day “full shutdown” and the religious holiday’s toll on economic activity is felt. In addition to pointing to the loss of production in the industrial sector, which has been continuously expanding since December last year, the sluggish outlook for the service sector has played a decisive role in the slowing of the SAMEKS Composite Index.
The “gradual normalization” process due in June and expectations that many restrictions will be lifted in this context, a significant acceleration is expected for the coming period.”
MUSIAD