[ad_1]
The recovery of Turkey’s manufacturing sector continued in December, albeit at a slightly softer pace, a survey showed on Monday, amid restrictions aimed at curbing the second wave of the coronavirus outbreak.
The general index of purchasing managers (PMI) fell to 50.8 in December, its lowest level since May, from 51.4 a month earlier, data from the Istanbul Chamber of Industry (ISO) and IHS Markit showed, staying above the 50 mark separating expansion. contraction.
The latest reading indicates that the health of the manufacturing sector has improved the least in the past seven months even though business conditions continue to show signs of improvement, according to the survey report.
A surge in infections caused a slowdown in production and new orders in December, ISO and IHS Markit said, but companies continued to expand employment and increase purchasing activity.
“New export orders also declined amid a second wave of infections in several export markets,” the report noted.
“Employment rose for the seventh consecutive month and at a solid pace that remained unchanged from that seen in November,” he said.
Manufacturers experienced difficulties in securing raw materials, and supplier lead times were lengthened, according to the report, contributing to a sharp increase in input costs.
The weakness of the currency also played a role in rising input costs and product prices, the panel said.
“Producer prices also rose sharply, albeit at a slightly slower pace than in November,” he noted.
“The Turkish manufacturing sector ended 2020 facing two headwinds,” said Andrew Harker, Chief Economic Officer at IHS Markit.
“First, the COVID-19 pandemic, which has ruined much of the year, caused production and new orders to soften. Second, severe supply chain disruption hampered companies’ ability to source the materials they need and added to already increasing cost burdens, ”Harker noted.
Despite these challenges, he said, companies were eager to expand their capacity, hiring additional staff and purchasing more inputs.
“This suggests that manufacturers will be prepared when the limitations of the aforementioned operations are eased,” said Harker.
