Turkish manufacturing saw signs of improvements in demand over the course of November, according to surveys taken for the Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI) covering the month.

Business conditions remained challenging but both output and new orders moderated to lesser extents, while employment returned to growth, said survey compiler S&P Global.

It added: “Although in November the headline PMI posted below the 50.0 mark for the eighth month running [only scores above that threshold denote overall improvement of the sector], at 48.3 the latest reading was up from 45.8 in October and pointed to the least marked moderation of business conditions since May.”

Firms were helped by a further easing of inflationary pressures, with output prices rising at the softest pace since December 2019, said S&P.

Andrew Harker, economics director at S&P Global Market Intelligence, said: "There were definite signs of improvement in the Turkish manufacturing PMI data for November, with output and new orders moderating to much lesser extents than in October.

“In fact, the latest figures are consistent with increases in official manufacturing production data, based on the historical relationship with the PMI.

“The most positive aspect of the survey was a renewed rise in employment, suggesting that firms are confident of increases in workloads and the subsequent need for additional staff in the months ahead.

“A waning inflationary environment likely played a role in the improvements seen in November, with the slowest increase in output prices for five years enticing some customers to make new orders. These inflation trends will hopefully continue in the months ahead, helping to stimulate demand further.”