The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 54.9 points in December last year, up from November’s 52.9 points. Any figure greater than 50 indicates an overall improvement of the sector.
The latest reading marked the tenth consecutive month of growth in the Turkish manufacturing sector, indicating the strongest improvement in business conditions in four months. Furthermore, the headline PMI remained well above its long-run trend level.
New order growth quickened in December, helped by the strongest rise in new export orders since February 2011. Rising new orders fed through to an eleventh successive monthly rise in manufacturing production, and one that was the fastest in three months. Gabriella Dickens, economist at IHS Markit, said, “Higher new orders encouraged firms to increase employment sharply.”
Meanwhile, strong production growth was supported by a further rise in employment during December, with staffing levels increasing at the quickest pace since March 2011. This expanded capacity enabled firms to work through outstanding business.
Finally, input prices increased sharply again during December amid unfavourable exchange rate movements. In response to higher cost burdens, manufacturers raised their output prices. That said, the rate of inflation eased from that seen in November.