Türkiye's Purchasing Managers Index for manufacturing sector rises last month
(MENAFN) Türkiye's Purchasing Managers Index (PMI) for the manufacturing sector reached 49.1 in December, up from 48.3 in November, according to data released by S&P Global on Thursday. This marks a positive shift for the Turkish manufacturing sector, signaling a near stabilization in business conditions. The PMI’s increase suggests a moderation in the rates of decline in key areas such as output, new orders, purchasing, and inventories, indicating some improvement in overall manufacturing activity.
While employment experienced a slight decrease in December following a rise in November, input costs surged noticeably. Despite the increase in input costs, the rate of output price inflation eased, reaching its weakest level in just over five years. This suggests that while inflationary pressures on input materials remain, businesses are facing less pressure to raise their selling prices, which may help stabilize demand.
The move toward stabilization in the sector was consistent across several key variables. Production was scaled back only marginally in December, with a slower pace of reduction compared to previous months. This marks the least severe drop in production in the current nine-month period of slower output. This signals some signs of demand improving, albeit at a cautious pace.
New orders continued to moderate, reflecting ongoing subdued demand in the sector. However, the rate of decline in new business eased, marking the smallest reduction in new orders seen over the last several months. While demand remains weak, this modest improvement indicates a potential stabilization in market conditions, suggesting that the manufacturing sector may be moving toward a more balanced outlook for the future.
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