The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 54.7 points in June this year, up from May’s 53.5 points, indicating the strongest overall improvement in business conditions in the Turkish manufacturing sector since November 2013. Any figure greater than 50 indicates an overall improvement of the sector.
The rise in the PMI reflected stronger growth of new orders, output and employment.
Manufacturing new orders in Turkey rose at the sharpest rate since February 2011 in June. Survey data signalled strong domestic demand in particular, while new export orders increased at the second-fastest rate in over three years.
Growth of production also accelerated in June. The rate of expansion hit a 43-month record as firms addressed new order inflows and worked on existing contracts. Backlogs of work declined slightly as a result, despite the sharper rise in new business.
Manufacturers supported workloads by increasing their purchasing activity at the fastest rate since February 2014, while the rate of job creation hit a 29-month high.
Input price inflation slowed for the sixth successive month in June to its weakest level since September 2016. Similarly, output price inflation moderated further to an eight-month low.
“The Turkish manufacturing PMI continued its ascent in June, signalling the best overall performance of the sector in more than three-and-a-half years. Notably, new orders increased at the fastest rate in over six years which bodes well for the third quarter. The recent strength of the PMI was corroborated by the latest official industrial production figures, which revealed annual growth of 6.7 percent back in April,” stated Trevor Balchin, senior economist at IHS Markit.