Turkiye factory activity stays weak as PMI falls in January

Manufacturers signalled muted demand conditions in January, feeding through to a further easing of new orders. In response, firms reduced production for the twenty-second consecutive month, with the latest decline more pronounced than in December. Employment, purchasing activity and inventories of both inputs and finished goods were also scaled back.

Cost pressures, however, intensified. Input costs rose at the fastest pace since April 2024, driven largely by higher raw material prices. Manufacturers passed on part of the burden to customers, with output prices increasing at the sharpest rate in 21 months and well above the long-term average, S&P Global said in a release.

“The Turkish manufacturing sector began 2026 in a similar position to that which it ended 2025, seeing modest slowdowns in new orders and production as business conditions remained challenging. Also continuing the recent trend, inflationary pressures strengthened in January, with both input costs and output prices increasing sharply. Firms will be hoping to see these pressures abate somewhat in the months ahead to provide an easier path to growth,” Andrew Harker, economics director at S&P Global Market Intelligence, said, commenting on the PMI survey data.

Fibre2Fashion News Desk (HU)