Turkey’s manufacturing PMI eases, employment improves

Turkey’s manufacturing upturn slowed in December although input price inflation eased to a 19-month low on the back of falling oil prices and employment growth for goods producers hit a 3-year high

Turkey’s manufacturing upturn was sustained in the final month of 2014, albeit at a weaker pace, according to the latest Turkey Manufacturing project and manufacturing information (PMI) survey data.

Output, new orders and purchases of inputs all rose more slowly since November, but employment growth for goods producers hit a three-year high.

The headline HSBC Turkey Manufacturing PMI was a composite single-figure indicator of manufacturing performance. It was derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases, read the statement on Turkey Manufacturing PMI released by Markit.
The PMI had remained above the no-change mark of 50 for the fifth successive month in December, indicating a further overall improvement in manufacturing business conditions in Turkey, according to the data.

The PMI eased from November’s nine-month high of 52.2 to 51.4, indicating the slowest overall growth since September, remaining higher than its historic average of 51. The manufacturing sector’s performance over the fourth quarter as a whole was the strongest since the first quarter of 2014.
Consumer inflations still high

Commenting on the Turkey Manufacturing PMI survey, Melis Metiner, Chief Economist at HSBC Turkey said, “Manufacturing conditions remained broadly favorable in December. Output, new orders and new export orders all rose, but the pace of output growth was slower compared to November.”

“Price pressures continued to moderate. The rate of output price inflation was the lowest since August 2012. The sharp fall in oil prices is pushing down output price inflation, which, in turn, should translate into lower consumer inflation. As of November, annual...

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