S&P Global: Turkey’s manufacturing sector improves in Nov. ’24

Turkey’s manufacturing sector showed tentative signs of recovery in November, with the Istanbul Chamber of Industry Türkiye Manufacturing PMI rising to 48.3 from October’s 45.8, though remaining below the 50.0 threshold for the eighth consecutive month.

The improved PMI reflected slower declines in output and new orders, alongside a return to job growth after nine months of workforce reductions. Employment grew at its fastest rate since July 2023 as firms anticipated rising workloads.

Inflationary pressures eased significantly, with input cost inflation hitting a two-year low and output price increases slowing to their softest pace since December 2019. This contributed to improved demand, as firms reported new orders from customers.

Production declines were the weakest since April, and new export business contracted at a slower pace. However, input buying and inventory levels continued to moderate, and suppliers’ delivery times lengthened due to geopolitical tensions.

Andrew Harker, Economics Director at S&P Global Market Intelligence, noted that the easing inflationary pressures and improving demand conditions indicate cautious optimism among Turkish manufacturers regarding future workloads.

Attribution: S&P Global

Subediting: M. S. Salama