The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 52.3 points in March this year, up from February’s 49.7 points. This was one of the largest month-on-month increases in the headline figure in the 12-year history of the survey, and signalled the strongest overall improvement in operating conditions since February 2014. The PMI was above its long-run trend level of 50.7. Driving the PMI higher in March were sharper increases in both output and employment, as well as a rise in new orders. Any figure greater than 50 indicates overall improvement of the sector.
The volume of new business received by Turkish manufacturers rose at the fastest rate since December 2015 in March. Growth was also strong in the context of historic survey data. Moreover, new export orders increased at the fastest pace since April 2014.
New business resulted in a faster increase in output, which rose at the sharpest rate since February 2014. Firms were also able to continue to deplete their backlogs of work during the month, albeit at the slowest rate for over a year.
“The Turkish PMI rose sharply in March to signal the strongest overall improvement of the Turkish manufacturing sector in over three years. Output and jobs increased at stronger rates as new business growth resumed. Price pressures also showed signs of easing during the month,” stated Trevor Balchin, senior economist at IHS Markit.