The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 53.5 points in May this year, up from April’s 51.7 points, indicating the strongest overall improvement in business conditions in the Turkish manufacturing sector since December 2013. Moreover, the headline figure has now registered above its long-run trend level of 50.7 for the past three months. Any figure greater than 50 indicates overall improvement of the sector.
Output in May increased at the fastest rate since February 2014, while growth of new work hit a 42-month high. Data signaled that domestic demand had strengthened, while new export orders increased at the second-fastest rate in over three years.
Manufacturers supported workloads by increasing their purchasing activity at the fastest rate since November 2014. This led to longer supplier delivery times.
Inflationary pressures eased further in May. Input prices rose at the slowest rate in eight months, while output price inflation fell to a seven-month low.
“Growth rates for output, new orders, exports and jobs all strengthened, and the backlogs index highlighted strains on capacity,” stated Trevor Balchin, senior economist at IHS Markit.