Turkish manufacturing activity contracts at slower pace in January: Index

Turkish manufacturing activity shrank at a slower pace in January thanks to an increase in new export orders after sinking to a four-month low the previous month, a survey showed on Feb. 1.

The manufacturing Purchasing Managers' Index (PMI) rose to 48.7 in January from 47.7 in December 2016, according to the Istanbul Chamber of Industry and HIS Markit. 

The 2016 average was 48.8. 

The index, however, remained below the 50-point line dividing contractions in activity from expansions.

"The Turkish PMI remained below 50.0 at the start of 2017, mainly reflecting the output and new orders components," Markit senior economist Trevor Balchin said.

 "More positively, employment was stable during the month and exports rose. Cost pressures remained intense, linked again to the weak currency." 

The depreciation of the Turkish Lira continued to push up manufacturing input prices in January. 

While the output and new orders indicators remained below the neutral threshold of 50, the latest survey data signaled a stable trend in manufacturing employment and strong inflationary pressures in the sector.