Turkish factory activity contracts in Dec but shows improvement -PMI

ISTANBUL (Reuters) – Factory activity in Turkey contracted for the 10th straight month in December, but showed signs of improvement from the previous month, with a slowdown in output and new orders, a survey on Monday showed. indicated by

The Purchasing Managers Index (PMI) for the manufacturing sector stood at 48.1 in December, up from 45.7 in November, according to the Istanbul Chamber of Industry and S&P Global.

December’s reading was the highest since June, but fell below the 50-point line that separates contraction and expansion of activity.

A panel of contributors said an improvement in demand was evident and there were some reports that inflationary pressures continued to weigh on them, with weak global markets pushing new export orders out of total new deals. has slowed down, he added.

“The latest PMI survey shows signs of temporary improvement, which if continued into the new year could give Turkish manufacturing a boost,” said Andrew Harker, economics director at S&P Global Market Intelligence. has potential,” he said.

“While demand remains fragile, particularly internationally, cost pressures are less extreme than in early 2022 and supply chain conditions are improving, which we hope will provide a tailwind for the sector heading into 2023. “

Input purchases eased at a much slower pace than the previous month, but signs of improvement underpinned a second straight month of job growth, with staffing levels sharpest in a decade, according to a panel of contributors. showed a significant increase.

While input cost inflation remained relatively subdued in December, output prices rose at the same pace as the previous survey period, but at a much lower pace than at the beginning of the year, according to the panel.

It added that supplier delivery times were cut to one of the highest ranges on record as demand for inputs was weaker and port disruptions decreased.

Reported by Ezgi Erkoyun. Written by Ali Kucukgocmen.Edited by Hugh Lawson

Our Standards: Thomson Reuters Trust Principles.

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