Slight fall in Turkey's manufacturing in July

Manufacturing activity in Turkey declined slightly in July, a monthly survey conducted by the central bank showed.

The index fell to 76.2 in July from 77.1 in June, the central bank said on its website on Thursday. A reading above 50 indicates growth in the sector.

Double-digit inflation and a slide in the lira's value has hit Turkish consumer confidence in recent months, indicating a disparity between manufacturing performance and consumer spending.

The index is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

Turkey’s economic activity slowed down after posting 7.4 percent expansion in the first quarter and growth of 7.3 percent in the final three months of 2017. The central bank raised interest rates to 24 percent last year to stem a slide in the value of the lira.

On Thursday, Turkey’s central bank under the newly appointed governor Murat Uysal announced that it had decided to reduce the policy rate to 19.75 percent from 24 percent.