Turkey: Manufacturing operating conditions improve at stronger pace in January
Operating conditions in the Turkish manufacturing sector improved at the strongest clip at the start of the new year since July last year, with the Istanbul Chamber of Industry Turkey Purchasing Managers Index (PMI) rising to 54.4 in January from 50.8 in December. The index therefore moved further north of the neutral 50-threshold that separates an overall expansion from contraction in business activity.
The jump in January came on the back of a return to growth in output, new orders and exports. Consequently, job creation quickened to the fastest rate in just over three years. Regarding prices, a relative stable currency supported a softer rise in input and output prices, but supply chain disruptions amid raw material shortages exerted upward pressure on input costs.
Andrew Harker, economics director at IHS Markit, commented:
“Positive vaccine news contributed to the more buoyant picture in January. As with economies all over the world, the near-term fortunes of the sector will depend on developments related to the pandemic and vaccine roll-out.”