The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 55.3 points in August this year, up from July’s 53.6 points, indicating a strong overall improvement in business conditions in the Turkish manufacturing sector. The latest figure was the highest since March 2011, and well above its long-run trend level of 50.8. Any figure greater than 50 indicates an overall improvement of the sector.
Manufacturing new orders in Turkey rose for the sixth successive month in August. Moreover, the rate of expansion quickened since July and almost matched June’s 76-month record high. Survey data continued to signal that domestic new business increased more sharply than new export orders.
Turkish manufacturing output rose for the seventh consecutive month in August. Furthermore, the rate of growth strengthened for the third time in four months, and was the sharpest since March 2011.
Firms expanded capacity to meet output requirements. Employment growth accelerated since July, and purchasing activity increased at the fastest rate since November 2013. Despite the increased pace of hiring, backlogs of work increased during the month.
Input price inflation accelerated for the first time since December 2016 in August, reaching its highest since May. Similarly, output price inflation quickened for the first time in seven months.
“The Turkish manufacturing sector moved up a gear in August with the strongest overall improvement in business conditions in nearly six-and-a-half years. This was reflected in faster growth of output, new orders and jobs in the sector,” stated Trevor Balchin, senior economist at IHS Markit.