The Istanbul Chamber of Industry (ICI) Turkey Manufacturing PMI (Purchasing Managers Index) posted 50.5 in January, down from 52.1 in December 2021. Thus, the manufacturing PMI fell to its lowest level in the last eight months. However, the headline PMI remained above the threshold of 50.0 with the support of employment and suppliers’ delivery times indices.
Turkish manufacturers emphasized strong inflationist pressures stemming from TRY devaluation. Input costs continued to rise sharply, although the rate of inflation slowed from the record posted in December. Ongoing price pressures led to companies having difficulties in securing new orders. Thus, total new orders slowed for the fourth successive month in January. New export orders also slowed following a 7-month growth period. The decline in new orders paved the way for a slowdown in production and purchase activities. Both indices have decelerated over the past two months.
Apart from raw material supply and logistics problems, the difficulties that stemmed from the price hike paved the way for a further lengthening of suppliers’ delivery times in January, but the disruption was less than in December.
Production slowed in almost all sectors
The January figures for the the ICI Turkey Manufacturing PMI indicated that difficult operating conditions continued in many sectors in the country’s manufacturing industry. Production in nine of the 10 sectors slowed in January. This figure was up from seven in December 2021.