The January manufacturing purchasing managers’ index (PMI) for Turkey showed output, new orders and exports all returned to growth, while the rate of job creation quickened to the fastest in three years, survey compilers IHS Markit and the Istanbul Chamber of Industry said on February 1.

The headline PMI rose to 54.1 in January from 50.8 in December (anything above 50.0 denotes a strengthening of the sector).

Relative stability of the Turkish lira helped lead to weaker rises in both input costs and output prices, but shortages of raw materials meant that inflationary pressures remained marked, while delivery delays were also recorded, IHS Markit added.

Economics director at IHS Markit Andrew Harker said: “Latest PMI data highlighted a positive start to the year for the Turkish manufacturing sector, with output and new orders returning to growth amid reducing COVID-19 case numbers. The key highlight from the latest survey was a sharp rise in employment as firms boosted workforce numbers to meet production requirements. “Positive vaccine news contributed to the more buoyant picture in January. As with economies all over the world, the near-term fortunes of the sector will depend on developments related to the pandemic and vaccine roll-out.”

The survey also noted that new orders increased solidly, and for the first time in three months. “The rate of growth was the fastest since August 2020. Similarly, new export orders returned to expansionary territory following a two month sequence of moderation,” IHS Markit said.

Issues with the supply of raw materials meant that input costs continued to rise sharply, although the rate of inflation eased to a six-month low amid relatively stable exchange rates, it noted, adding: “A similar picture was seen with regards to output prices, with charges rising sharply but at a slower pace.”