In January, the Istanbul Chamber of Industry Turkey Manufacturing PMI decreased to 48.0 (from 49.1 in the previous month), remaining below the neutral threshold of 50.0 for the tenth consecutive month. Key highlights from the press release published by the Istanbul Chamber of Industry are as follows:
The deterioration in business conditions, although slight, reached the most pronounced level in the past three months.
▪ As the Manufacturing PMI approached the neutral threshold, the decline in industrial production, which had slowed in December, accelerated again in January.
▪ Both total new orders and new export orders experienced a slowdown compared to the previous month.
▪ Manufacturers reduced employment for the second consecutive month on a monthly basis.
▪ Input cost inflation, while accelerating compared to the previous month, remained below its historical average.
According to the January Sectoral PMI report, developments in various sectors can be summarized as follows:
▪ New orders lost momentum across all 10 sectors tracked in the survey, with the food products and chemicals, plastics, and rubber sectors also transitioning from growth to slowdown.
The sharpest contraction was observed in the textile products sector.
▪ Despite the general decline in total new orders, new export orders increased in half of the sectors, with a particularly strong expansion in the electrical and electronic products sector.
▪ The food products and machinery and metal products sectors continued to create new employment, standing out as exceptions.
▪ Except for the chemicals, plastics, and rubber products sector, input cost inflation increased across all sectors compared to December. The fastest rise occurred in the motor vehicles and parts sector, while the most moderate increase was seen in the basic metals sector.
▪ Like production, the only sector where input purchases increased was food products.
▪ The electrical and electronics products sector saw the highest increase in input stocks in the survey’s history, while the machinery and metal products sector experienced the most significant stock accumulation in the past nine years.
By Serkan Gonencler, Gedik Invest
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