Turkish PMI registers 47.7 in December
The latest PMIT survey data from Istanbul Chamber of Industry and IHS Markit pointed to a slight increase in the employment of Turkish manufacturing sector, whereas the Output, New Orders and New Export Orders indices registered below the neutral threshold of 50.0. The latest survey data also signalled stronger inflationary pressures in the sector.
The headline Istanbul Chamber of Industry Turkey Manufacturing PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers' delivery times and stocks of purchases. Any figure greater than 50.0 indicates overall improvement of the sector. The PMI registered at 47.7 in December. The headline index averaged higher in the last three months of the year, compared to the preceding quarter.
The level of the PMI in December was primarily influenced by the seasonally adjusted Output and New Orders indices, both remaining below 50.0. This was partly offset by positive contributions from the employment and suppliers' delivery times indices.
The volume of new export business fell in December. The rate of contraction was only marginal, and December's index level followed a 11-month peak in the previous month.
Employment in the goods-producing sector continued to rise in December. The current sequence of job creation now stretches to five months, although the rate of growth eased in the latest period.
Latest data signalled that the purchasing activity undertaken by Turkish goods producers slowed in December compared with one month previously. That followed the strongest growth in nearly two years in October.
The depreciation of the lira continued to exert upward pressure on manufacturing input prices in December, with inflation continuing its upward trend. Thus, output prices charged by manufacturers also rose at a higher rate, compared to the previous period.