The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 53.6 points in July this year, down from June’s 54.7 points, still indicating a strong overall improvement in business conditions in the Turkish manufacturing sector. Any figure greater than 50 indicates an overall improvement of the sector.
The latest figure was the second-highest since November 2013, and the fifth-highest in over six years. The PMI has registered above its long-run trend level for the past five months.
Manufacturing capacity in Turkey continued to expand in July. Output and employment both increased for the sixth successive month, and the rates of growth remained strong despite easing from their June highs. Backlogs of work fell for the second month running.
Purchasing activity increased for the fifth consecutive month in July, leading to a further lengthening of suppliers’ delivery times.
Input price inflation slowed for the seventh successive month in July to the weakest since September 2016. Similarly, output price inflation moderated further to a nine-month low.
“The Turkish manufacturing sector started the third quarter on a solid footing, with further strong gains in output, new orders and jobs recorded in July. The PMI posted its fifth-highest level in over six years. Price pressures also eased further during the month,” stated Trevor Balchin, senior economist at IHS Markit.