Turkish manufacturing sector nears stabilisation in December, PMI reveals

ISTANBUL (Reuters) – Turkey’s manufacturing sector contracted on the slowest price in eight months in December, a enterprise survey confirmed on Thursday, in an indication that the sector is nearing stabilisation.

The Buying Managers’ Index (PMI) rose to 49.1 final month from 48.3 in November, shifting nearer to the 50.0 threshold denoting development, in line with the survey by the Istanbul Chamber of Business and S&P International.

“December PMI knowledge supplied loads of hope for the sector in 2025. Whereas enterprise circumstances continued to reasonable, the most recent slowdown was solely marginal as indicators of enchancment have been seen in a variety of variables throughout the survey,” stated Andrew Harker, Economics Director at S&P International Market Intelligence.

The survey highlighted a softer moderation in manufacturing, which declined on the slowest tempo in 9 months, suggesting some enchancment in demand. The speed of slowdown in new orders and buying eased, though demand remained subdued.

“If this momentum might be constructed on initially of 2025, we might see the sector return to development. The prospects for the sector must be helped by a way more benign inflationary surroundings than has been the case lately,” Harker stated.

Regardless of the optimistic indicators, employment within the manufacturing sector noticed a renewed decline, reversing an increase in November, the survey confirmed.

Enter prices elevated sharply on account of larger uncooked materials costs, however the price of output value inflation slowed to its weakest in over 5 years as some companies supplied reductions to spice up gross sales.