Turkish manufacturing activity contracts in December -PMI

Credit: REUTERS/UMIT BEKTAS

ISTANBUL, Jan 2 (Reuters) - Turkish factory activity contracted for a sixth consecutive month in December as output and new orders slowed further, a survey showed on Tuesday.

The Purchasing Managers' Index (PMI) for manufacturing ticked up to 47.4 from 47.2 in November, according to a survey by the Istanbul Chamber of Industry and S&P Global, still standing below the 50-point mark that separates growth from contraction.

Production eased largely as a result of challenging market conditions, the survey said as a lack of demand caused a slowdown in both total new orders and business from abroad.

Despite the moderating workloads employment stabilised, the survey showed, while purchasing activity was scaled back by the most in four months.

Currency weakness, higher wages and increased raw material prices meant that input costs rose again and in turn firms increased output prices, the PMI survey panel said.

"The moderation in the Turkish manufacturing sector seen at the end of 2023 summed up a challenging second half of the year for firms, with subdued demand a key feature," Andrew Harker, economics director at S&P Global Market Intelligence, said.

"There was some good news for the labour market, however, with firms keen to keep workforce numbers stable heading into the new year... the potential for a more subdued inflationary environment in 2024 could provide some hope for a demand recovery in the sector."

(Reporting by Ezgi Erkoyun; Editing by Susan Fenton)

((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))

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