Manufacturing industry nears stabilization: PMI survey

ISTANBUL

The Turkish manufacturing sector neared stabilization in December as rates of moderation in output, new orders, purchasing and inventories all softened over the course of the month, the Istanbul Chamber of Industry’s (İSO) PMI survey has shown.

The headline PMI rose to 49.1 last month from 48.3 in November, pointing to only a slight moderation in the health of the manufacturing sector and one that was the least pronounced in eight months, the survey said.

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

Less positive was a renewed scaling back of employment, following a rise in November, the survey said, adding that input costs increased markedly, but the rate of output price inflation eased to the weakest in just over five years.

New orders continued to moderate overall, however, as demand remained subdued, according to the survey.

“With new order inflows remaining muted, manufacturers scaled back their purchasing activity, inventory holdings and employment, the last of which easing following a rise in November,” it added.

Input costs increased at a marked pace in December, linked to higher raw material prices and weakness of the lira against the U.S. dollar, the survey said.

The final set of PMI data for Türkiye in 2024 provided plenty of hope for the sector in 2025, commented Andrew Harker, economics director at S&P Global Market Intelligence.

“If this momentum can be built on at the start of 2025, we could see the sector return to growth,” Harker said.