Turkey’s manufacturing activity shrank less than expected in Dec
2023.01.02 11:24
Turkey’s manufacturing activity shrank less than expected in Dec
Budrigannews.com – A survey released on Monday revealed that Turkish factory activity contracted for the tenth consecutive month in December, but it showed some signs of improvement compared to previous months as output and new orders decreased more slowly.
The Istanbul Chamber of Industry and S&P Global (NYSE:) reported that in December, the manufacturing Purchasing Managers’ Index (PMI) reached 48.1, up from 45.7 in November. said.
Even though the reading in December was at its highest level since June, it remained below the 50-point line that distinguishes expansions from contractions in activity.
The panel of contributors stated that demand was improving, though there were some reports that inflationary pressures were still present. They also said that the weak global market had caused new export orders to decline more than total new business.
According to Andrew Harker, economics director at S&P Global Market Intelligence, “there were some tentative signs of improvement in the latest PMI survey, which if continued into the new year could see the Turkish manufacturing sector gaining some ground.”
“While demand remains fragile, particularly internationally, cost pressures are not as severe as they were earlier in 2022” and “supply-chain conditions are improving, hopefully providing a tailwind to the sector heading into 2023” are two of the positive factors.
The panel of contributors stated that input buying moderated at a much slower pace than a month earlier. On the other hand, the signs of improvement supported a second month in a row of employment growth, with staffing levels showing the sharpest rise in ten months.
According to the panel, output prices rose at the same rate as in the previous survey period, but at a rate that was significantly lower than earlier in the year. In December, input cost inflation remained relatively muted.
They added that there was less demand for inputs and less disruption at the ports, so suppliers saw their delivery times decrease to one of the highest levels ever recorded.
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