Turkish manufacturing activity grew in September but at a slower pace than the previous month, according to a key survey.
The Turkish Purchasing Managers Index (PMI) fell to 52.8 from 54.3 in August, according to the monthly poll by the Istanbul Chamber of Industry (ISO) and IHS Markit published on Thursday. Any reading above 50 indicates an expansion.
The slowdown in growth comes after the Turkish lira hit successive record lows against the dollar, prompting the central bank to increase its benchmark interest rate. Turkish Treasury and Finance Minister Berat Albayrak said this week that an expected economic recovery in the second half of the year would probably mean an overall expansion for 2020.
The lira’s decline against major currencies increased both costs and output prices, the ISO and IHS Markit said.
But the pace of job creation increased to the fastest pace since February 2018 as companies received new orders from buyers, they said.
“A sustained period of improving demand means that manufacturers are willing to invest in rebuilding workforces following the COVID-19 downturn,” said Andrew Harker, Economics Director at IHS Markit.
“That said, rates of expansion in new orders and output have levelled off and the threat of the pandemic remains. Firms will be hoping that trends remain positive over the final quarter of the year to keep the recovery going.”
Turkey has reported a spike in new infections of COVID-19 in recent weeks. This week, Turkish Health Minister Fahrettin Koca said official government data did not include asymptomatic cases, raising concerns among medical practitioners and analysts about the extent of the outbreak.
The Turkish lira fell 0.4 percent to 7.75 per dollar on Friday. It hit a record low of 7.85 against the U.S. currency on Tuesday.