Turkey: Manufacturing PMI returns to expansion in January
February 3, 2020
Business conditions in the Turkish manufacturing sector improved for the first time in nearly two years in January, with the Istanbul Chamber of Industry Turkey Manufacturing Purchasing Managers’ Index (PMI) rising to 51.3 in January from 49.5 in December.
The uptick in January came amid a stronger rise in production, a recovery in new orders and higher employment. New orders returned to growth on improving demand dynamics both at home and abroad, with the first rise in new export orders in six months. Consequently, output expanded at the quickest rate in almost two years, leading to a reduction in backlogs of work and stocks of finished goods, which were used to meet the rise in demand. Meanwhile, inflationary pressures rose as input prices increased at the quickest rate in six months, partly due to lingering currency weakness; output prices also rose modestly.
Meanwhile, the capacity utilization rate for the sector fell from 77.0% in December to 75.5% in January.
Author: Jan Lammersen, Economist