ICI Released January 2025 ICI Türkiye Manufacturing PMI and Türkiye Sector PMI Report

• 03.02.2025
• News

Istanbul Chamber of Industry Türkiye Manufacturing PMI posted 48.0 in January, below the 50.0 no-change mark for the tenth consecutive month. Business conditions moderated to a modest degree that was nonetheless the most marked in three months. After having neared stabilisation in the final month of 2024, manufacturing production was scaled back solidly in January. with total new business and new export orders each moderating over the course of the month. Employment was also scaled back, the second month running in which this has been the case. 

According to ICI Türkiye Sector PMI report in January, new orders lost momentum in all 10 sectors monitored under the survey; and shifted to slowdown from growth in food products and chemicals, plastics and rubber products sectors. The sharpest contraction was in textiles. Despite the widespread decline in total new orders, new export orders increased in half of the sectors. The number of sectors with increased staff numbers remained limited. 

Istanbul Chamber of Industry (ICI) released the January 2025 results of Türkiye Manufacturing PMI (Purchasing Managers’ Index) survey, which is recognized as the fastest and reliable indicator of the manufacturing industry’s performance in the economic growth. According to the results of the survey where any figure greater than 50.0 indicates overall improvement of the sector, the headline PMI posted 48.0 in January, down from 49.1 in December and below the 50.0 no-change mark for the tenth consecutive month. Business conditions moderated to a modest degree that was nonetheless the most marked in three months. After having neared stabilisation in the final month of 2024, manufacturing production was scaled back solidly in January. Demand conditions remained under pressure while output has moderated in each of the past ten months. The stagnated demand environment was also highlighted by data on new orders, with total new business and new export orders each moderating over the course of the month. Employment was also scaled back in January, the second month running in which this has been the case. That said, the pace of moderation in staffing levels was only marginal. 

Purchasing activity eased, feeding through to a moderation in stocks of purchases. Weak demand for inputs relieved some pressure on supply chains. Lead times subsequently lengthened only fractionally and to the least extent in four months. The rate of input cost inflation accelerated, but it 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. In turn, the pace of output price inflation also quickened in January, rising to a four-month high. As with input costs, however, the latest increase was weaker than the series average.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing PMI survey data, Andrew Harker, Economics Director at S&P Global Market Intelligence, said:

"After production in the Turkish manufacturing sector had neared stabilisation in December, the sharper slowdown at the start of 2025 comes as something of a disappointment, and shows the ongoing fragility of customer demand. Firms will be hoping that conditions revive in the months ahead, helping to support growth.”

According to sector PMI, new orders lost momentum in all 10 sectors

The Istanbul Chamber of Industry’s Türkiye Manufacturing Sector PMI January 2025 report signaled a widespread slowdown in total new orders despite the improvement in exports in some sectors. As a result, output dropped in all sectors except food products. The number of sectors with increased staff numbers remained limited. Inflationary pressures showed signs of increasing, particularly in the land and sea vehicles sector.

In January, new orders lost momentum in all 10 sectors monitored under the survey; and shifted to slowdown from growth in food products and chemical, plastic and rubber products sectors. The sharpest contraction was observed in textiles. Despite the widespread decline in total new orders, new export orders increased in half of the sectors.

The expansion in exports was particularly strong in the electrical and electronic products sector, recording the highest rate since September 2021. Compared to the outlook for new orders, the outlook for output was slightly more positive. In January, only food products recorded growth, while, similar to the situation with new orders, the most pronounced slowdown in output was recorded in textiles. Food products and machinery and metal products continued to hire additional staff in early 2025. They continued to be the exception in terms of new job creation. 

In nine of the 10 sectors, input cost inflation increased compared to December, with the only exception of chemicals, plastics and rubber products. The fastest rise in input prices was recorded in land and sea vehicles, while the most moderate increase in basic metals. Land and sea vehicles also saw the fastest increase in final product prices among the monitored sectors. Following December, when some sectors cut their prices, all sectors raised their selling prices in January. Purchasing activity slowed down in general in January. Food products were the only sector that saw an increase in input purchases as well as output. Nevertheless, stock levels showed signs of increase. In the electrical and electronic equipment sector, input stocks increased at the highest rate in the history of the survey, while the machinery and metal products sector recorded the most significant inventory accumulation in the last nine years.

You can find attached the Istanbul Chamber of Industry Türkiye Manufacturing PMI and Sector PMI January 2025 reports.