Turkey: Manufacturing PMI signals contraction in January
February 2, 2015
The HSBC Manufacturing Purchasing Managers’ Index (PMI) fell from 51.4 in December to 49.8 in January. As a result, the PMI now lies below the 50-threshold that separates expansion from contraction in manufacturing conditions. In addition, the print marked a six-month low.
January’s fall mostly reflected declines in output and new orders. That said, the still-strong dynamics in the manufacturing sector prompted job creation to remain a bright spot, with the corresponding sub-index expanding at December’s three-year high pace. Input prices slowed to the weakest rate in over five-and-a-half years. In this regard, HSBC analysts pointed out that, “[f]irms reported that the weaker lira-dollar exchange rate continued to pressurize import prices in general, but also a deflationary impact from falling oil prices.”