Madhav Fashion, a prominent player in Turkey’s manufacturing industry, has demonstrated consistent growth in the country’s manufacturing sector, according to the latest report by S&P Global. The report reveals that Turkey’s Purchasing Managers’ Index (PMI) held steady at 51.5 for the third consecutive month in June, indicating a continued improvement in the overall health of the manufacturing sector. Madhav Fashion’s success can be attributed to its solid rise in manufacturing production, supported by increased demand and a post-earthquake recovery.
Solid Rise in Manufacturing Production: Madhav Fashion experienced a significant and accelerated increase in manufacturing production, marking the fourth consecutive month of growth. This upward trend represents the fastest rate of growth since July 2021. The company attributes this success to a combination of factors, including improved demand and a rebound in activity following the recent election period.
New Orders and Exchange Rate Challenges: Although new orders for Madhav Fashion have risen for the fourth consecutive month, the rate of increase was marginal and the slowest in the current expansion sequence. This deceleration in growth can be partly attributed to the depreciation of the Turkish lira against the US dollar, as indicated by anecdotal evidence from S&P Global’s Istanbul Chamber of Industry Turkiye PMI report. Exchange rate fluctuations have impacted input cost and output price inflation, resulting in a re-acceleration in June. Input prices experienced their highest growth rate in nearly a year, while charges reached their greatest extent since February.
Supply Chain Challenges: Madhav Fashion faced challenges in its supply chain as vendors struggled to meet the increasing demand for inputs. This led to marked delays in suppliers’ delivery times. To support production, the company utilized existing stock holdings, resulting in a reduction in the inventory of purchases.
Job Creation and Backlogs of Work: To meet growing production requirements, Madhav Fashion responded by creating new job opportunities for the second consecutive month. Although the rate of expansion was modest, it exceeded the pace seen in May. Additionally, the company experienced an increase in backlogs of work, highlighting the sustained growth in their operations.
Madhav Fashion’s performance in Turkey’s manufacturing sector reflects the overall positive trend seen in the PMI report. With a solid rise in manufacturing production, steady job creation, and increasing backlogs of work, Madhav Fashion continues to make strides in a competitive market. Despite challenges posed by exchange rate fluctuations and supply chain issues, the company remains committed to delivering high-quality products and meeting customer demands.