Turkey’s intense inflationary pressures weighed on the country’s manufacturing sector in December, purchasing managers’ index (PMI) survey data from the Istanbul Chamber of Industry and
Turkish manufacturing firms, however, reported a further increase in staffing levels during December, meaning the headline PMI for their sector remained above the 50.0 no-change mark in the month, ticking up slightly to 52.1 from 52.0 in November.
Operations 'hampered'
It added: “Other indices from the latest survey painted a less positive picture, however, with operations often hampered by steep inflationary pressures.
“Input costs rose at the sharpest pace since the survey began in mid-2005, with the rate of inflation surpassing the previous record from
“Firms indicated that lira depreciation was the principal factor pushing up cost burdens. In turn, manufacturers also raised their selling prices at a record pace. Rising prices often deterred customers, resulting in a third successive moderation of total new orders. This was despite new export business continuing to expand amid improving international demand.”
Production was scaled back in December, following a marginal rise in November,
“According to respondents, delays reflected difficulties obtaining raw materials, in some cases due to fluctuating prices, as well as issues with transportation and particular problems securing goods from abroad.”
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