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Turkish factory activity ticks up in January but still in downturn

Türkiye’s manufacturing activity picked up in January when compared to a month earlier but remained in a contraction zone for the seventh straight month, according to an industry survey on Thursday.

The Purchasing Managers Index (PMI) of the Turkish manufacturing industry improved to 49.2 in January from 47.4 in December, data provider S&P Global said, thus still standing below the 50-point mark that separates growth from contraction.

“The health of the sector has now eased in seven consecutive months,” S&P Global underlined.

It said that although business conditions in the sector are still challenging at the beginning of 2024, rates of moderation in output, new orders and purchasing activity have eased since last month.

It also highlighted disruptions caused by the reroute from shipping in the Red Sea, which “contributed to a solid lengthening of suppliers’ delivery times.”

Andrew Harker, economics director at S&P Market Intelligence, said there were some positive signs in the latest PMI figures for Türkiye, with rates of moderation generally easing.

However, he acknowledged that manufacturers did face some headwinds while higher output prices acted to limit demand.

“Meanwhile, the shipping issues in the Red Sea disrupted supply chains, which had shown an improvement at the end of 2023.”

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