According to ISO Türkiye Manufacturing PMI January survey results, headline PMI reached the highest level in the last four months. The value recorded as 47.4 in December 2023 increased to 49.2 in January 2024. Although the deterioration in operating conditions eased in January, the general situation in the sector is still considered fragile. While the decreasing trend in production continued, the shrinking trend in new orders continued in the seventh month.
The slowdown in new export orders was at more moderate levels. The decline in new orders led companies to reduce their purchasing activities and stocks. However, the employment level remained flat after the increase in December.
Input cost inflation rose significantly in January, reflecting the impact of the minimum wage increase as well as the rise in raw material costs and the depreciation of the lira. Manufacturers also increased their sales prices and inflation reached its highest level in the last five months. According to some survey participants,
The increase in delivery times was due to shipment delays caused by developments in the Red Sea.
In January, when demand and production remained stagnant, growth was limited to the chemical, plastic and rubber sectors. There were positive developments in employment and the number of employees increased in five out of ten sectors.
Input costs increased significantly across the manufacturing industry in January. Inflation accelerated in all sectors except non-metallic mineral products, with the sharpest price increase on record for land and sea vehicles. The fastest increase in sales prices was again in land and sea vehicles, and inflation in this sector reached its highest level in the last five months.
According to the report, suppliers' delivery times were extended due to the delays caused by the problems in the Red Sea. The most significant increase in delivery times was seen for chemicals, plastic and rubber products. However, PMI data gave positive signals that the slowdown in the sector has eased and the data showed that the year had a good start.
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