Turkish manufacturing activity shrinks at slower pace in January

Turkish manufacturing activity contracted at a slower pace in January after sinking to a four-month low the previous month, a survey showed on Wednesday. The manufacturing Purchasing Managers' Index (PMI) rose to 48.7 in January from 47.7 in December, according to the Istanbul Chamber of Industry and HIS Markit. But it 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 lira continued to push up manufacturing input prices in January. Output prices charged by manufacturers also rose at a higher pace compared with last month.
The lira has been battered this year, following hefty falls in 2015 and 2016, partly on security concerns and worries about the independence of the country's central bank.