Turkish Manufacturing Activity Barely Grows in February

An employee works at an assembly line in the Toyota manufacturing plant in Sakarya October 10, 2013. REUTERS/Osman Orsal
An employee works at an assembly line in the Toyota manufacturing plant in Sakarya October 10, 2013. REUTERS/Osman Orsal
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Turkish Manufacturing Activity Barely Grows in February

An employee works at an assembly line in the Toyota manufacturing plant in Sakarya October 10, 2013. REUTERS/Osman Orsal
An employee works at an assembly line in the Toyota manufacturing plant in Sakarya October 10, 2013. REUTERS/Osman Orsal

Turkish factory activity barely grew for a second straight month in February amid sharp price rises and a slowdown in production due to outages of natural gas and electricity, a survey showed on Tuesday.

The Purchasing Managers' Index (PMI) for Turkish manufacturing stood at 50.4 in February, slipping from 50.5 in January, data from the Istanbul Chamber of Industry and IHS Markit showed.

According to Reuters, it has held above the 50.0 mark that denotes growth for nine consecutive months.

New orders continued to ease for a fifth month in February due to market uncertainty and sharp price rises, the panel said. Inflation in Turkey neared 50% in January, mainly due to a currency crisis at the end of last year.

Input costs rose sharply in February due to higher prices for raw materials, energy and transport and rising wages, some of which was exacerbated by currency weakness, it said, adding that this led to higher selling prices.

Last month, Iran cut gas flows to Turkey due to a technical failure. Planned gas and electricity cuts at industrial facilities caused some firms to halt production.

The outages hit production volumes, and output softened for a third consecutive month, the panel said. Backlogs also increased due to energy shortages, as well as delivery delays.

Manufacturers expanded their staffing levels to improve operating capacity, it said, leading to a rise in employment for a 21st consecutive month.

"Disruption to electricity and natural gas supply added to the challenges being faced by Turkish manufacturers and contributed to a slowdown in output during February," said Andrew Harker, economics director at IHS Markit.

"Meanwhile, the latest PMI data suggested that inflationary pressures may have peaked around the turn of the year, though cost increases remained sharp midway through the first quarter."



Riyadh Hosts Saudi-Egyptian Industrial Forum

Officials are seen at the forum on Monday. (SPA)
Officials are seen at the forum on Monday. (SPA)
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Riyadh Hosts Saudi-Egyptian Industrial Forum

Officials are seen at the forum on Monday. (SPA)
Officials are seen at the forum on Monday. (SPA)

The Saudi-Egyptian Industrial Forum kicked off in Riyadh on Monday under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef. The forum aims to bolster strategic industrial cooperation and integration between the two countries.

Organized by the Federation of Saudi Chambers of Commerce in collaboration with the Federation of Egyptian Industries, the forum witnessed the participation of Deputy Minister for Industrial Affairs Eng. Khalil bin Salamah, Saudi Export Development Authority CEO Abdulrahman Althukair, and 300 prominent Saudi and Egyptian industry leaders and investors.

Bin Salamah underscored the significance of strengthening economic cooperation and industrial integration between Saudi Arabia and Egypt. He advocated for enhanced industrial partnerships within five priority sectors identified in the Kingdom's National Industrial Strategy: pharmaceuticals, automotive, building materials, textiles, and food industries.

He highlighted the evolving strategic integration between the two countries across initiatives like "Saudi Made,Future Factories," and "Made in Egypt," as well as in the broader goods and services sector. Bin Salamah urged Egyptian industrialists to capitalize on the industrial investment opportunities available in the Kingdom, citing its ambitious plans to establish 24,000 new factories over the next decade.

Federation of Saudi Chambers of Commerce Chairman Hassan Alhwaizy hailed the forum as a crucial milestone in Saudi-Egyptian industrial collaboration, emphasizing the strategic partnership underpinning their economic relations, particularly in the industrial sector.

Federation of Egyptian Industries Chairman Mohamed El-Sewedy stated that current global challenges are accelerating the need for industrial integration between the two countries, strengthening their partnership to tap into the African market's potential.

Saudi-Egyptian Business Council Chairman Bandar Al-Ameri highlighted the substantial growth in trade exchange between Saudi Arabia and Egypt in recent years, fueled by developing economic partnerships between their respective business communities. He emphasized that signing the agreement to protect and encourage mutual investments represents a strategic achievement serving their shared interests.