Türkiye's manufacturing sector activity contracted at a sharper pace in January, remaining below a threshold indicating growth, a top business survey showed Monday.
The Purchasing Managers Index (PMI) for the manufacturing industry fell to 48 last month, down from 49.1 in December, according to data released by the Istanbul Chamber of Industry (ISO) and S&P Global.
Total new business and new export orders both moderated, highlighting the challenges facing the sector amid a weak demand outlook and inflationary pressures.
Employment posted a slight decline for the second consecutive month in January, although the rate of decline was marginal, while input costs and the rate of output price inflation accelerated.
"Input cost inflation, although gaining momentum compared to the previous month, remained below its historical average," the survey said.
Pressure on supply chains eased slightly, with lead times rising at their slowest pace in at least four months.
Output price inflation also quickened to a four-month high but remained below the series average.
Higher input prices reflected a range of factors, including rising costs for raw materials and fuel, increased wages and currency weakness, according to S&P Global.
The opening month of 2025 saw a moderation in the Turkish manufacturing sector as demand conditions remained subdued, S&P Global said.
"The sharper slowdown at the start of 2025 comes as something of a disappointment and shows the ongoing fragility of customer demand," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
"Firms will be hoping that conditions revive in the months ahead, helping to support growth," he added.
