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Manufacturing sector’s recovery continues in Turkey

Manufacturing sector’s recovery continues in Turkey

Turkey’s manufacturing sector’s recovery continued in January, as the headline index reading showed the industry posted its most robust improvement in business conditions since July 2020.

Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector rose to 54.4 in January, data from the Istanbul Chamber of Industry (ISO) and London-based global data firm IHS Markit showed Monday, staying above the 50 mark that separates expansion from contraction.

Output, new orders and exports all showed growth following the second wave of the coronavirus outbreak and initial vaccine rollouts. The index was up from 50.8 in December.

Output returned to growth following a two-month sequence of moderation caused by a renewed wave of the pandemic, the panel said. Higher new orders and coronavirus vaccine news contributed to the rise in production, it said.

The growth in new orders led firms to hire more staff, the panel said, with personnel levels rising at their fastest pace in over three years.

Input costs continued to rise sharply, according to the panel, as firms experienced severe disruptions to supply chains with delays linked to raw material shortages.

“Data highlighted a positive start to the year for the Turkish manufacturing sector. … The key highlight from the latest survey was a sharp rise in employment,” said Andrew Harker, economics director at IHS Markit.

“Positive vaccine news contributed to the more buoyant picture in January. As with economies all over the world, the near-term fortunes of the sector will depend on developments related to the pandemic and vaccine rollout.”