Broadly stable biz conditions in Turkish manufacturing sector in Feb

Supplier lead times lengthened to the greatest extent in ten months as the earthquake caused difficulties in the sourcing and delivery of inputs.

The earthquake affected supply chains and caused a moderation in output in the sector as some firms paused production.

Output eased modestly, albeit at the second-slowest pace in a year. New orders also moderated to a greater extent due to the earthquake, albeit one that was the second weakest in 16 months, S&P Global said in a release.

Both total new orders and new export business eased during February. Paused production lines and difficulties sourcing items led manufacturers to scale back their purchasing activity, with stocks of inputs also lower.

Issues with supply and production meant that some firms turned to existing inventories to help meet order requirements. As a result, stocks of finished goods were depleted to the greatest extent since December 2021.

Rises in raw material costs and wages, plus currency weakness, led to a further marked increase in input prices during February. The rate of inflation was little-changed from January and broadly in line with the series average. In turn, output prices also rose sharply, albeit at a pace that was below the average seen across 2022.

ALCHEMPro News Desk (DS)