The Turkey PMI™ Manufacturing Index, issued by Istanbul Chamber of Industry and Markit, was at 53.5 points in September this year, down from August’s 55.3 points. Any figure greater than 50 indicates an overall improvement of the sector.
Although falling from 55.3 in August, the latest reading still indicated an overall improvement in the health of the Turkish manufacturing sector. The latest figure marked the seventh successive month of improving business conditions, which is the longest period of consecutive growth since 2014. Furthermore, the headline figure remained well above its long-run trend level of 50.8.
The upturn was supported by robust demand for Turkish-manufactured goods. Firms benefited from strong inflows of new work and raised output accordingly. New export business also increased further, though at a slower rate than that for total new orders.
Firms expanded capacity to meet larger output requirements. Employment growth was seen for the eighth straight month at the end of the third quarter, and purchasing activity increased at a sharp rate.
Reflective of additional hiring, backlogs of work decreased during the month. That said, stocks of finished goods continued to fall in September as firms used their inventories to fulfill orders.
Both input and output price inflation eased in September. Moreover, rates of inflation were below their averages for 2017 so far.
“The Turkish manufacturing sector reached the end of the third quarter on a strong footing. Improvements in overall business conditions were sustained in September with solid overall expansions in output, employment and purchases,” stated Gabriella Dickens, economist at IHS Markit.