The manufacturing activity in Türkiye rebounded in February after shrinking for eight straight months, with tentative signs of improving customer demand, a closely watched survey showed Friday.
The Purchasing Managers’ Index (PMI) for manufacturing rose to 50.2 last month from 49.2 in January, inching above the 50-point line that marks growth in activity, the Istanbul Chamber of Industry (ISO) and S&P Global said.
Treasury and Finance Minister Mehmet Şimşek said the data signaled a good start to 2024.
“The PMI, which has been increasing for two months, shows that we have made a good start to the year in industrial production,” Şimşek wrote on social media platform X, formerly known as Twitter.
“With the recovery in the European Union, our main trading partner, the manufacturing industry will become even stronger,” he noted.
Firms contributing to the survey pointed to signs of customer demand improving despite a marginal slowdown in new orders, the panel showed.
In turn, firms expanded their purchasing activity while stocks of components continued to moderate due to supply delays caused by disruptions to trade through the Suez Canal.
Firms signaled a moderation in employment levels amid voluntary resignations and difficulties sourcing new staff, the survey showed.
Input and output prices rose sharply again, linked to higher raw material and transport prices, currency weakness, and the recent 49% minimum wage increase in Türkiye.
“A renewed expansion in output provided a boost to the Turkish manufacturing sector in February and suggests that we should see some solid growth numbers come through in the official data in the months ahead,” said Andrew Harker, economics director at S&P Global Market Intelligence.
“Although new orders continued to moderate, the news here was also promising as demand neared stabilization. Firms will be hoping that new order trends can join those for output in growth mode in the near future.”
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