According to Turkey's Manufacturing PMI data, the headline PMI decreased from 49.1 in December to 48 in January. The Turkish manufacturing industry exhibited a slowdown in the first month of 2025 due to the ongoing stagnation in demand conditions. PLASFED Chairman Ömer Karadeniz stated that this indicator, which has been below the threshold for nearly a year, is alarming, attributing the weakening of the manufacturing sector to factors such as tight financing conditions, geopolitical tensions, and trade protectionism.
Due to the persistent challenging market conditions, the manufacturing sector has seen a decline trend for about a year. The continued stagnation in demand conditions also affected Turkish manufacturing in the first month of 2025. Following a slight improvement in December, the decline in the headline PMI, down to 48 in January from 49.1 in December, has disappointed economic circles. Comments suggest that this downturn in the manufacturing sector's performance is likely to continue for some time, while the fragility of demand is expected to persist.
PLASFED Chairman Ömer Karadeniz expressed concerns regarding this decline in Turkey's manufacturing sector PMI data in January. Karadeniz noted that the PMI data has remained consistently below the threshold for 11 months, and its drop below the previous month reflects the struggles industrialists are experiencing. Emphasizing that there can be no development without production, Karadeniz called for solutions to the problems faced by industrialists.
PMI data disappointed
The data signals that the future does not look promising, according to PLASFED Chairman, who reported that the manufacturing industry continues to exist within a contraction zone. Analyzed growth figures show a slowdown, with weakness in the manufacturing sector being one of the biggest reasons. Karadeniz stated, "According to the PMI data, the stagnation in the demand environment is also reflected in new order data. Both total new orders and new export orders recorded a slowdown compared to the previous month. Factors such as tight financing conditions, geopolitical tensions, and trade protectionism negatively impact the manufacturing sector."
The plastic sector maintained its current structure
Karadeniz indicated that among the 10 sectors that showed a contraction monitored in the PMI survey, except for the food sector, the chemical, plastic, and rubber sectors managed to maintain their existence. He also noted that the increasing trend in exports is encouraging.
Karadeniz reported that the decline in employment also continued in January, stating, "There was a slight decrease in purchasing activities. Although input costs continued to sharply rise compared to the previous month, final product price inflation also showed a decreasing trend."
“The decrease in annual inflation occurred due to base effects”
Karadeniz stated that annual inflation shows a trend of decline due to base effects and emphasized that it is necessary to reduce inflation permanently to ensure macroeconomic stabilization. He called for increased measures in the fight against inflation and noted that a holistic approach is needed to reach targeted levels, and that we must support monetary policies with structural reforms.
Karadeniz pointed out that the increase in financing costs and the decrease in domestic demand have deteriorated real sector balances, stating, "Our industrialists are willing to bear all necessary costs to achieve the balance we need in the economy and reduce inflation. We will continue to be part of the necessary efforts in the fight against inflation going forward."
Translated by Artificial Intelligence
