The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 52.9 points in November this year, up from October’s 52.8 points. Any figure greater than 50 indicates an overall improvement of the sector.
The headline figure signaled a solid overall improvement in business conditions. In fact, the latest reading marked the ninth consecutive month of growth in the Turkish manufacturing sector - the longest seen since 2014. Furthermore, the headline PMI remained well above its long-run trend level of 50.8.
For the tenth successive month, output increased at Turkish manufacturers, buoyed by robust demand. Survey data signaled that total new business continued to increase more sharply than new export orders.
Meanwhile, manufacturing capacity in Turkey expanded further in November. Notably, the rate of employment growth was the fastest in almost three years, as businesses attempted to accommodate higher volumes of new orders.
Furthermore, purchasing activity rose for the ninth consecutive month and at a solid rate. As a result, outstanding business declined for the third month in a row. That said, pre-production inventories at Turkish manufacturers declined, having increased slightly in October.
Elsewhere, cost inflationary pressures increased across the Turkish manufacturing sector in November. Respondents overwhelmingly pointed to unfavorable exchange rates as the main factor influencing the increase in cost burdens.
“Turkey’s manufacturing upturn continued in November, with sustained growth in output, new orders and exports. Firms reacted by increasing workforce numbers at the fastest pace in 34 months. In line with higher demand, companies also increased their purchasing activity,” stated Gabriella Dickens, economist at IHS Markit.