Manufacturing recovers from bottom in May, still in contraction position

According to the data announced by Istanbul Chamber of Industry (ISO) and IHS Markit; manufacturing PMI which was at 33.4 in April with recession-induced effects related to Covid-19 in the economy, stood at 40.9 in May, with some recovery from the bottom.

In April, we observed the deepest effects of company activities, which were hesitated by the effects of quarantine measures and lockdowns against Covid-19. May indicates a more stable situation compared to April, in line with the projections. The fact that closures were partially rather than full quarantine in us also had an effect on this. The partial return of some companies operating in the production area to the activity helped the index recover from the bottom. However, the sector still remains in a contraction position. Factors such as recovery in demand will take time, stagnation of external demand, slowing production rate due to protection measures will affect supply, new orders and weak employment side will be effective on this. The progress of the normalization calendar, which started in June, will increase the momentum of recovery.

 

We will see the main shrinkage effect of Covid-19 in the data regarding the 2Q20 period for the economy, which grew by 4.5% in the first quarter and a very important part of it came from the economic activity in the first 2 months.

Source: Tera Menkul
Hibya News Agency

Okunma