Turkish factory activity contracts again in Nov -PMI
ISTANBUL, Dec 2 (Reuters) - Turkish manufacturing activity contracted again in November as new orders slowed although data pointed to an uptick in output for the first time in more than 18 months, a business survey showed on Monday.
Turkey's manufacturing activity had contracted for 17 consecutive months, showing the impact of a currency crisis last year, before holding steady in September from the previous month. In October, it returned to contraction.
The Purchasing Managers' Index (PMI) for manufacturing rose slightly to 49.5 last month, from 49.0 in October, nearing the 50-point line that separates expansion from contraction, said a panel from the Istanbul Chamber of Industry and IHS Markit.
Manufacturing production increased fractionally due to improving market conditions, the first time it had done so since April 2018, the panel said, but new orders continued to moderate as demand remained fragile.
Softer cost inflation and competitive pressures led manufacturers to lower their output prices for the third month running, the panel showed.
"The key highlight from the latest PMI survey was a return to growth of production for the first time in over a year and a half. Although only fractional, the rise demonstrates improved confidence among firms that market conditions are on an upward trajectory," said Andrew Harker, associate director at survey compiler IHS Markit.
"Based on the relationship between the PMI and official industrial production data, we should be looking at year-on-year growth in production when November figures are released."
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(Reporting by Ezgi Erkoyun; Editing by Catherine Evans)
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