PMI posts 50.5 in January

LONDON

Turkey’s PMI manufacturing index posted 50.5 in January, down from 52.1 in December 2021 and the lowest in eight months, the survey data from Istanbul Chamber of Industry and IHS Markit have showed.

Any figure greater than 50 indicates overall improvement of the sector.

The latest reading suggested that price pressures led to a challenging start to the year for firms operating in the Turkish manufacturing sector, said IHS Markit in a statement yesterday.

The headline PMI posted above the 50 no-change mark in January thanks to contributions from the employment and suppliers’ delivery times indices, it added.

Input costs and output prices continued to rise sharply, albeit at softer rates than the records seen at the end of last year, according to the statement.

“This led to challenges for firms to secure new work, contributing to moderations in new orders and production. More positively, employment continued to rise.”

Ongoing price pressures meant that firms continued to face challenges securing new orders, leading total new business to moderate for the fourth successive month, IHS Markit noted.

New export orders also slowed in January, ending a seven-month sequence of growth, With new orders easing, firms scaled back their production and purchasing activity, in both cases for the second month running, the survey showed.

“The new year began very much as the old one ended, with Turkish manufacturers continuing to face the challenges of operating in an inflationary environment,” commented Andrew Harker, economics director at IHS Markit.

There were, however, some signs of pressures beginning to ease, something which firms will hope continues over the rest of the first quarter to help them in the hunt for new business, he said.