Turkey: Manufacturing PMI weakens in January
February 1, 2016
The Manufacturing Purchasing Managers’ Index (PMI), elaborated by the Istanbul Chamber of Industry (ICI) and Markit, fell from December’s nearly one-year high of 52.2 to 50.9 in January. Despite the deterioration, the manufacturing PMI remains firmly entrenched above the 50-threshold that separates contraction from expansion in manufacturing conditions.
January’s print mainly reflected that output, new orders and purchasing activity all continued to expand, albeit at softer rates. On the other hand, input stocks and employment expanded at a faster pace than in the previous month. ICI analysts added that, “Turkey’s manufacturers started 2016 in better shape than a year ago. The PMI has now posted above 50.0 for three months in a row, and is currently in line with its historic average. That said, growth of new orders weakened, casting doubt on the near-term prospects for the sector. New export orders fell, linked to geopolitical factors and uncertainty. Moreover, the weakening currency resulted in renewed pressure on firms’ input prices during the month.”