Türkiye's manufacturing activity ticked up slightly in December but remained in the contraction zone for a sixth consecutive month as output and new orders slowed further, a survey showed on Tuesday.
The Purchasing Managers' Index (PMI) for manufacturing rose to 47.4 from 47.2 in November, according to a survey by the Istanbul Chamber of Industry (ISO) and S&P Global, still standing below the 50-point mark that separates growth from contraction.
Production eased largely as a result of challenging market conditions, the survey said, as a lack of demand caused a slowdown in both total new orders and business from abroad.
Despite the moderating workloads, employment stabilized, ending a two-month sequence of moderation, the survey showed, while purchasing activity was scaled back by the most in four months.
Currency weakness, higher wages and increased raw material prices meant that input costs rose again and in turn, firms increased output prices, the PMI survey panel said.
The rate of cost inflation eased for the fifth straight month, while output price inflation was the strongest since August.
"The moderation in the Turkish manufacturing sector seen at the end of 2023 summed up a challenging second half of the year for firms, with subdued demand a key feature," Andrew Harker, economics director at S&P Global Market Intelligence, said.
"There was some good news for the labor market, however, with firms keen to keep workforce numbers stable heading into the new year ... the potential for a more subdued inflationary environment in 2024 could provide some hope for a demand recovery in the sector."
