Turkey's manufacturing index hits 7-year high

The Purchasing Managers' Index (PMI) for Turkey's manufacturing sector reached 55.7 in January amid strong demand and accelerated output growth, a closely monitored business survey said on Thursday.

"In fact, the overall performance was the best since March 2011 amid strong underlying demand," according to the report of London-based global data company IHS Markit prepared in collaboration with the Istanbul Chamber of Industry.

The report indicated that the volume of new orders and output level also rose the fastest in almost seven years.

"The upward movement in the headline index was supported by sharp and accelerated output growth at the beginning of 2018," the report said, adding that manufacturing output had also risen the quickest since February 2011.

The latest PMI report said an increase in cost pressures on the sector was driven by exchange rates and a lack of material.

"Strong production growth was supported by a further rise in employment during the month, with workforce numbers increasing solidly, albeit at a slightly slower pace," it added.

A reading greater than 50 indicates the sector is growing, while a reading below 50 signals a contraction.