Turkiye's manufacturing PMI at 52.1 at end of 2021

ANKARA

Turkiye’s Purchasing Managers’ Index (PMI) for the manufacturing sector stood at 52.1 at the end of 2021, according to figures released on Monday.

Ticking up slightly from the previous month, manufacturing PMI hovered above the threshold level for the seventh month in a row in December, a monthly report by the Istanbul Chamber of Industry and London-based global data firm IHS Markit showed.

Job creation was one of the factors behind the latest improvement in business conditions, read the report.

“Employment rose for the 19th successive month, and at a solid pace that was the fastest since August,” it said.

Pointing to the negative impact of inflationary pressures on the Turkish manufacturing sector in December, the report said demand and production were moderated amid intense price rises.

Input costs rose at the sharpest pace since the survey began in mid-2005, as “firms indicated that lira depreciation was the principal factor pushing up cost burdens,” it added.

With customers deterred by rising prices, total new orders moderated for the third consecutive month, while new export business continued to expand amid improving international demand.

According to the Turkish Statistical Institute, Turkiye’s annual inflation rose to a 19-year high of 36.08% in December.