ISTANBUL: Turkish factory activity contracted for a seventh consecutive month in January although output and new orders fell at a slower pace, a survey showed on Thursday.
The Purchasing Managers’ Index for manufacturing climbed to 49.2 from 47.4 in December, 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.
A large increase in the minimum wage for 2024 led to a spike in the rate of input cost inflation in January, with output prices rising in response.
The survey signaled only a slight moderation in business conditions, with some signs of improvement in demand, though staffing levels were unchanged.
The ongoing fragility of demand was highlighted by a further easing of new business, the panel said. In response, firms scaled back purchasing activity.
Suppliers’ delivery times lengthened, the survey showed, and in some cases, delays were associated with shipping issues caused by developments in the Red Sea.
“There were some positive signs in the latest PMI figures for Turkiye, with rates of moderation generally easing,” Andrew Harker, economics director at S&P Global Market Intelligence, said.
“Manufacturers did face some headwinds, however. A rapid acceleration in cost inflation fed through to much higher output prices, acting to limit demand. Meanwhile, the shipping issues in the Red Sea caused disruption to supply chains,” he added.
