Turkish manufacturing PMI unchanged in January

ISTANBUL

Latest survey data from the Istanbul Chamber of Industry and IHS Markit have pointed to ongoing challenges for Turkish manufacturing firms at the start of 2019.

At 44.2 in January, the headline PMI was unchanged from that seen in December, signaling a solid monthly moderation in business conditions, and the 10th in as many months.

Output and new orders continued to ease, although new business slowed to the least extent in five months amid a near-stabilization of new export orders, IHS Markit said in a statement on Feb. 1.

“The rate of input cost inflation softened further, enabling firms to offer discounts to try to secure new business.”

The headline Turkey Manufacturing PMI is a composite single-figure indicator of manufacturing performance. Any figure greater than 50.0 indicates overall improvement of the sector.

While production eased at a broadly similar pace to that seen in December, the rate of moderation in new orders softened and was the weakest since August last year, data showed.

New export orders, meanwhile, stabilized amid signs of improvements in international demand for Turkish goods.

Weaker cost inflation allowed manufacturers some room to reduce their selling prices in order to try to boost new business, Markit noted.

Employment was scaled back again, albeit to a slightly lesser extent than seen in December.

“While output price discounting is helping to soften the slowdown in new orders, business conditions clearly remained challenging for Turkish manufacturers at the start of 2019. On a more positive note, international demand seems to be offering some support having been broadly stable in January,” said Andrew Harker, associate director at IHS Markit.