Turkish manufacturing activity edges up
Manufacturing activity in Turkey rose slightly in November due to an expansion in new orders and exports.
The Istanbul Chamber of Industry Turkey PMI Manufacturing index rose to 52.9 from 52.8. A reading above 50 indicates growth in the sector.
Data for October and November, however, indicates a slowdown in activity for the final quarter. The index rose an average of more than 54 in the three months to September, when economic growth increased 1.2 percent quarter on quarter.
Still, the November reading was the ninth-straight positive number and was spurred by measures including a state-sponsored debt restructuring plan for struggling firms, worth about 230 billion lira ($60 billlion).
“The headline figure signalled a solid overall improvement in business conditions,” the statement said.
The rate of employment growth was the fastest in almost three years, as businesses attempted to accommodate higher volumes of new orders, according to the statement. However, cost pressures brought on by higher inflation and the weaker lira increased across the sector, it said.
Double-digit inflation and a slide in the lira's value has hit Turkish consumer confidence in recent months, indicating a disparity between manufacturing performance and consumer spending.
The index is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.