The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 49.7 points in February this year, up from January’s 48.7 points. The latest figure was above the 2016 average of 48.8. Any figure greater than 50 indicates overall improvement of the sector.
The rise in the headline PMI in February was primarily influenced by the seasonally adjusted output and employment indices both registering above 50.0, and also an uptick in the new orders index (though it remained below 50.0). There was also a mildly positive contribution from the suppliers’ delivery times index.
The volume of new export business rose for the fifth time in seven months in February.
The recent depreciation of the lira continued to exert upward pressure on manufacturing input prices in February. The rate of input price inflation remained sharp, but eased for the second month running to a four-month low. Meanwhile, output prices charged by manufacturers continued to rise, but at a weaker rate than in December and January.
“The Turkish PMI rose to 49.7 in February, signalling a near-stabilisation of the Turkish manufacturing sector. Encouragingly, output rose during the month and job creation resumed. The latest survey results also signalled weaker inflation than in recent months, although price pressures remained strong overall,” stated Trevor Balchin, senior economist at IHS Markit.