Turkish manufacturing PMI survey data signalled a stagnation in business conditions in the sector at the start of 2015, said Markit on February 2, adding that output, new orders, exports and purchases of inputs all declined in January, although employment continued to rise sharply. The latest survey also indicated weakening inflationary pressure.
The headline HSBC Turkey Manufacturing PMI fell for the second month running to 49.8 in January, from 51.4 in December, said Markit. Any figure below 50.0 signals contraction. That signalled a marginal deterioration in manufacturing business conditions and ended a five-month sequence of improvement, Markit explained.
A key factor behind the deteriorating business climate in January was a renewed fall in the volume of new orders, with new export business contributed to the overall decline, falling at the strongest rate since July 2013. according to Markit.
Turkish manufacturers reported a fall in the volume of new inputs ordered in January, ending a five-month sequence of modest purchasing growth, said Markit, adding that this resulted in the fastest drop in pre-production inventories since October 2009.
The latest survey results highlighted a weakening of inflationary pressure in the goods-producing sector, said Markit. Firms reported that the weaker lira-dollar exchange rate continued to pressurise import prices in general, but also a deflationary impact from falling oil prices.
Here are the other highlights from the latest PMI survey:
* Output declined for the first time in six months, contraction was modest
* Output was partially supported by the completion of existing contracts.
* Employment remained a bright spot in January
*Rate of job creation broadly matching December’s three-year high
* Input prices increased, but at the weakest rate in the current 68-month period of rising average costs
* Prices charged for finished manufactured goods were broadly unchanged for the second month running
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