Health of manufacturing sector ease in 7 consecutive months, S&P Global says
The Purchasing Managers Index (PMI) of the Turkish manufacturing industry improved to 49.2 in January from 47.4 in December, data provider S&P Global stated on Thursday.
“The health of the sector has now eased in seven consecutive months,” S&P Global underlined.
It said although business conditions in the sector are still challenging at the beginning of 2024, rates of moderation in output, new orders and purchasing activity all eased since last month.
The data provider said: “A large increase in the minimum wage led to a spike in the rate of input cost inflation in January, with output prices rising at a faster pace in response.
“Meanwhile, issues with shipping in the Red Sea contributed to a solid lengthening of suppliers’delivery times,” it added.
Andrew Harker, economics director at S&P, said there were some positive signs in the latest PMI figures for Türkiye, with rates of moderation generally easing.
He 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, which had shown an improvement at the end of 2023.”
Source: aa