Page 24 - TURKRptJul20

Lira weakness pushes up input costs​.​ ​On the price front, rates of both input cost and output price inflation accelerated due to Turkish lira weakness, it noted. Moreover, ​the rate of inflation was the fastest for a year, causing manufacturers to raise their own selling prices​. The increase in charges was faster than that seen in April and quicker than the series average.
“Further sharp slowdowns in both output and new orders were recorded in May as the COVID-19 pandemic continued to disrupt business and hamper demand. Rates of moderation eased, however, with some firms reporting that they had resumed operations during the month,” the survey compiler also said.
It added: “​Manufacturers scaled back employment for the second month running​, albeit at a softer pace and one that was much weaker than those seen for output and new orders as the majority of companies kept staffing levels unchanged.
“A lack of new orders also led firms to moderate their purchasing activity, while also lowering stocks of both purchases and finished goods.”
Difficulties in terms of transportation due to COVID-19 restrictions meant that suppliers’ delivery times lengthened sharply again, with receiving items from abroad reportedly particularly difficult, IHS Markit said.
4.4 ​Labour and income
4.4.1​ Labour market, unemployment dynamics
As of March, the 15+ population reached 62.2mn, up 1mn year on year, while employment sharply contracted by 1.67mn y/y to 30.1mn, according to the latest​ official data​.
Only 22.5mn of 30.1mn actively worked in the month, down 4.5mn y/y, while 3.73mn people were ready to work if they found a job in addition to the official unemployment figure of 3.97mn people who actively searched for a job in the past few weeks.
Some 1.17mn people have lost hope of finding a job, up from half million a year ago.
As of June 13, 3.49mn people had received a TRY1,666 payment in compensation under a short-term employment allowance scheme while another 1.36mn had received TRY1,253 under unpaid leave or the "layoff ban", according to data from the trade minister.
24​ TURKEY Country Report​ July 2020 ​ ​www.intellinews.com