Turkish manufacturing shrinks at slower pace in February, PMI shows
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FILE PHOTO: Employees work next to an empty production line at a garment factory in the organized industrial zone in Corum, Turkey, August 23, 2024. REUTERS/Cagla Gurdogan/File Photo
ISTANBUL (Reuters) - Turkey's manufacturing sector showed signs of continued struggle in February, reflecting ongoing challenges with new orders, output and employment all hurt by muted market demand, a survey showed on Monday.
The Purchasing Managers' Index (PMI) inched up to 48.3 from 48.0 in January, remaining below the 50.0 threshold that separates growth from contraction, S&P Global reported on Monday.
February marked the 20th consecutive month of easing in new business, although the pace of moderation slowed compared to January.
"Turkish manufacturing firms continued to struggle to gain momentum in the opening part of 2025," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
"With firms seeing further challenges in securing new business, manufacturers were reluctant to take on staff or invest in new materials."
The survey highlighted a pronounced slowdown in new export orders, the most significant since last October, attributed to uncertainty in international markets. This contributed to a reduction in backlogs of work for the 20th month in a row.
Input and output prices rose at their fastest pace since September, driven by higher costs for raw materials, transportation, and wages, compounded by currency weakness.
Despite these headwinds, some optimism remains for the year ahead, with over 29% of respondents expecting increased output, although sentiment dipped slightly from January.
Overall, the data suggests the Turkish manufacturing sector continues to face significant hurdles, with inflationary pressures and subdued demand weighing on business conditions.
(Reporting by Reuters; Editing by Hugh Lawson)
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