Istanbul Chamber of Commerce Turkey Manufacturing PMI February 2020 Report Was Announced

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Istanbul Chamber of Industry Turkey Manufacturing PMI (Purchasing Managers Index), the most reliable reference for the manufacturing industry’s performance that is the leading indicator of economic growth increased to 52,4 in February and realized over the threshold value for the second month successively.

PMI pointed out to the fastest improvement of the last two years in the operation conditions of Turkish manufacturing sector. The improvement in the operation conditions was the result of the significant increase amount in the new orders and firms stated that the demand of the customers gained strength.

The results of the ICI Turkey and Istanbul Manufacturing PMI surveys, the fastest and the most reliable reference for the manufacturing industry's performance that is the leading indicator of economic growth, were declared for the term February 2020.

Given that the any figure above the threshold of 50 is an indication of improvement in the industry, Istanbul Chamber of Industry Turkish Manufacturing Industry PMI which was measured as 51,3 in January increased to 52,4 in February and realized over the threshold value  for the second month successively. PMI pointed out to the fastest improvement experienced since February 2018 in the operation conditions of manufacturing sector. The improvement in the operation conditions was the result of the significant increase amount in the new orders and firms stated that the demand of the customers gained strength. The strongest increase of the last two years was recorded in the new orders.

Manufacturers increased the production based on the improvement in the demand conditions. The increase was realized in the highest speed of a period for approximately two years. Existing expansion trend in the production reached to the fourth month with this development. The employment in the last survey period increased in the strongest rate since February 2018. Survey participants stated that the growth in employee number is the result of the increase in the production requirements.

Increase in the cost upon the value decrease in TRY

Input prices of Turkish manufacturers maintained their increase tendency in terms of cost. Inflation of input prices was realized in the highest rate of the last eight month. Most of the survey participants explained the increase in the cost load with the value loss of TRY compared to USD. Finally, firms preferred to reflect some part of the cost increase to the customers and therefore, the average product prices increased in February. The increase was realized in the highest rate and significant level since the last June.

Eliot Kerr, the IHS Markit Economist said that: The acceleration in the production increase and the fastest improvement of operation conditions in the last two years based on the refreshment in the demand pointed out that Turkish manufacturers spent February efficiently. The increase in the production accelerated the employment rate and brought a strong increase in personnel number. Such positive developments show that the sector might have entered into a sustainable growth period.”

Istanbul Chamber of Industry Turkey PMI Manufacturing Index (February 2020) Attach