Turkish manufacturing sector shows signs of stabilisation in Dec ’24
The Turkish manufacturing sector edged closer to stabilisation in December, as indicated by the Istanbul Chamber of Industry Türkiye Manufacturing PMI, which rose to 49.1 from 48.3 in November. While still below the 50.0 threshold that marks expansion, the reading points to the softest slowdown in eight months.
Outlook:
The sector shows potential for recovery in 2025. Andrew Harker, Economics Director at S&P Global Market Intelligence, noted, “While conditions continued to moderate, the slowdown was marginal, with signs of improvement in various metrics. A more stable inflationary environment could support growth in the coming year.”
Key Highlights:
- PMI at 49.1: The index saw a slight improvement, r. While business conditions continued to moderate, the latest slowdown was only marginal as signs of improvement were seen in a range of variables across the survey. If this momentum can be built on at the start of 2025, we could see the sector return to growth. eflecting a modest easing in the sector’s contraction.
- Production Decline Slows: Output moderated only fractionally, marking the least severe drop in a nine-month period of declining production.
- New Orders and Exports: Domestic and export orders continued to weaken but at a slower pace than in previous months.
- Employment Trends: Employment levels fell slightly after a brief increase in November.
- Input Costs and Inflation: Input costs rose sharply due to higher raw material prices and currency depreciation, but output price inflation slowed to its weakest pace in over five years.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser
