LASFED Board Chairman Ömer Karadeniz said that this indicator, which has remained below the threshold value for about a year, is worrisome and stated that factors such as tight financing conditions, geopolitical tensions and trade protectionism weakened the manufacturing industry.
Due to the continuation of difficult market conditions, a downward trend has been seen in the manufacturing industry performance for about a year. Due to the ongoing stagnation in demand conditions, a slowdown trend was also seen in the Turkish manufacturing industry in the first month of 2025. The headline PMI, which was 49.1 in December, decreased to 48 in January. This downward trend, which came after a slight improvement in December compared to the previous period, created a disappointment in economic circles. While it is commented that this decline in manufacturing industry performance will continue for a while, the fragility in demand is expected to continue.
Plastic Industrialists Federation (PLASFED) Board Chairman Ömer Karadeniz said that this decline in the PMI data of the Turkish manufacturing sector in January was concerning. Karadeniz stated that the PMI data, which has been below the threshold value for 11 months, falling below the previous month is an indicator of the trouble industrialists are in. Emphasizing that there can be no development without production, Karadeniz asked for a solution to the problems of industrialists.
PMI data disappoints
The President of the umbrella organization PLASFED, who pointed out that the data was not promising for the future, reported that the manufacturing industry continued to be in the contraction zone. Karadeniz, who pointed out that a slowdown was seen when looking at the growth figures and that one of the biggest reasons for this was the weakening in the manufacturing industry, said, “According to PMI data, the stagnation in the demand environment was also reflected in the data regarding new orders. Both total new orders and new export orders slowed down compared to the previous month. Factors such as tight financing conditions, geopolitical tensions and trade protectionism negatively affect the manufacturing industry.”
Plastics sector maintained its current structure
President Karadeniz, who stated that the chemical, plastic and rubber sectors, excluding the food sector, maintained their presence among the 10 sectors monitored within the scope of the PMI survey and showing contraction, noted that the increasing trend on the export side was also pleasing.
Karadeniz, who reported that the decline in employment continued in January, said, “There was a slight decrease in purchasing activities. Input costs continued to increase sharply despite the loss of momentum compared to the previous month. “Final product price inflation also decreased,” he said.
“The decrease in annual inflation occurred due to the base effect”
Karadeniz, who said that annual inflation showed a downward trend due to the base effect, emphasized that inflation should be reduced permanently in order to ensure macroeconomic balancing. Karadeniz, who wanted the measures taken to combat inflation to be increased, noted that we needed a holistic perspective in order to reach the targeted levels and that we should support monetary policies with structural reforms.
Karadeniz, who drew attention to the fact that real sector balance sheets were deteriorating as a result of the increase in financing costs and the decrease in domestic demand, said, “Our industrialists bore all the necessary costs and provided their support in order to provide the balancing we needed in the economy and to reduce inflation. We will continue to take part in the necessary efforts to combat inflation from now on.”