Manufacturing PMI improved in December

ISTANBUL

The headline Purchasing Managers’ Index (PMI) rose from 45.7 in November to 48.1 in December 2022, according to a survey conducted jointly by the Istanbul Chamber of Industry (ISO) and S&P Global.

Although still signaling a moderation in business conditions over the month, the latest reading was the highest since June and signaled a modest softening in the health of the manufacturing sector, the survey said.

Any figure greater than 50.0 indicates an overall improvement in the sector.

December saw softer moderations in output and new orders, while employment increased at the fastest pace since February 2022.

Meanwhile, inflationary pressures remained much more muted than earlier in the year.

“Signs of improvement were evident in terms of demand, with total new orders slowing to the joint least extent in almost a year. That said, there were some reports that inflationary pressures continued to weigh on demand, while global market weakness meant that new export orders moderated to a greater extent than total new business,” it said.

Meanwhile, manufacturing production also eased to a lesser extent in December, with the latest slowdown the weakest since February 2022.

After having slowed to a three-year low in November, the rate of input cost inflation remained relatively muted in December.

As was the case in November, suppliers’ delivery times shortened to one of the greatest extents on record amid reports of weak demand for inputs and reduced port disruption, the report said.

“There were some tentative signs of improvement in the latest PMI survey, which if continued into the new year could see the Turkish manufacturing sector gaining some ground,” commented Andrew Harker, economics director at S&P Global Market Intelligence.