Manufacturing activity picks up in January

ISTANBUL

The headline Turkish manufacturing Purchasing Managers' Index (PMI) increased from 47.4 in December 2023 to 49.2 in January, the data from S&P Global have shown.

“The PMI figure signaled only a slight moderation in business conditions at the start of the year. The health of the sector has now eased in seven consecutive months,” S&P Global said on Feb. 1.

The softer moderation of operating conditions matched the picture for output, which slowed to the least extent in six months, it added.

“According to respondents, demand remained fragile but showed some signs of improvement in January.”

A large increase in the minimum wage led to a spike in the rate of input cost inflation in January, with output prices rising at a faster pace in response, it said, noting that meanwhile, issues with shipping in the Red Sea contributed to a solid lengthening of suppliers' delivery times.

“The ongoing fragility of demand was highlighted by a further easing of new business, extending the current sequence of moderation to seven months. New export orders also softened, albeit only slightly.”

There were some positive signs in the latest PMI figures for Türkiye, with rates of moderation generally easing, commented Andrew Harker, economics director at S&P Global Market Intelligence.

“The historical relationship between the PMI data and official industrial production data suggests a solid start to the year,” Harker said.