Turkish manufacturing activity continues rising in November
Turkish factory activity stayed in the positive territory for the sixth month in a row, but a sharp increase in costs pushed output price rises to their fastest pace on record, a key survey showed on Dec. 1.
The Purchasing Managers’ Index (PMI) for manufacturing rose to 52 in November from 51.2 in October, data from the Istanbul Chamber of Industry (İSO) and IHS Markit showed, staying above the 50.0 mark that denotes growth.
While new export orders continued to grow, price rises and shortages of electronics components affecting the automotive sector pushed back total new business for the second month in a row, the panel said.
The latest weakness in the Turkish Lira pushed input costs up further and in turn firms raised selling prices at the steepest pace since the survey began 16.5 years ago, the panel said.
“While the Turkish manufacturing sector overall remained in growth territory in November, firms are coming under increasing pressure from sharply rising costs as currency weakness exacerbates already high raw material prices,” said Andrew Harker, economics director at IHS Markit.
“If firms are to gain some respite from these pressures in the coming months they will need to see some stabilization in the lira,” Harker said.
Production nevertheless supported a further rise in employment during the month, according to the survey results.
The report added that suppliers’ delivery times lengthened to the greatest extent since April 2020 amid ongoing challenges in transportation.