ISTANBUL, April 3 (Reuters) - Turkish factory activity
continued its expansion in March with improvements in new orders
and output although February's massive earthquakes continued to
impact the sector.
The Purchasing Managers' Index (PMI) for manufacturing rose
to 50.9 last month from 50.1 in February, staying above the
50-point line that separates expansion from contraction, the
Istanbul Chamber of Industry and S&P Global said.
Manufacturing production increased, the panel said, adding
that in some cases earthquake reconstruction efforts led to
higher output.
New orders returned to growth for the first time in a year
and a half, the survey showed, as business increased solidly
over the month and export orders picking up pace.
Despite the increase in production requirements, employment
dipped for the first time in five months, in part due to the
earthquake but also as a result of the new early retirement law,
the panel said.
Input costs and output prices rose sharply last month amid
higher raw material costs, currency weakness and increased
wages, it also said.
"Renewed output growth in the Turkish manufacturing sector
was a welcome development in March following the marked impact
of the earthquake in February," said Andrew Harker, economics
director at S&P Global Market Intelligence.
"Although some firms were still affected, the start of
reconstruction efforts supported the overall return to growth.
With new orders also up, we are hopefully seeing an end to the
relatively soft conditions experienced by firms over the past
year or so."
(Reporting by Ezgi Erkoyun; Editing by Toby Chopra)
Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))
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