ANKARA,(Reuters) - Turkey’s manufacturing, which represents around a third of the country’s economy, slipped further into contraction in December, falling to its lowest level in four months, a survey showed on Monday.
The manufacturing Purchasing Managers’ Index (PMI) slipped to 47.7 in December from 48.8 in November, according to the Istanbul Chamber of Industry and HIS Markit. Anything below 50 indicates contraction; anything above, expansion.
”The Turkish PMI remained below 50.0 in December, mainly reflecting the output and new orders components,“ Markit senior economist Trevor Balchin said. ”More positively, employment grew further during the month.
The depreciating lira was again responsible for an intensification of cost pressures, with input price inflation
accelerating further after a relatively moderate trend in the third quarter.”
The depreciation of the lira continued to put upward pressure on manufacturing input prices in December, with inflation continuing its upward trend, Markit said. As a result, output prices charged by manufacturers also rose at a higher rate, compared with the previous period.
The lira has hit a series of record lows this year, hurt by widening domestic concerns, particularly over security and a government crackdown following the failed coup in July.
The lira has lost around 20 percent of its value against the dollar this year.
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Reporting by Tuvan Gumrukcu, editing by Larry King