Istanbul Chamber of Industry Announces Türkiye and Istanbul Manufacturing PMI November 2019 Reports

• 02.12.2019
• News

The results of the ICI Türkiye Manufacturing PMI (Purchasing Managers Index) surveys, the fastest and the most reliable reference for the manufacturing industry's performance that is the leading indicator of economic growth, increased to 49,5 in November. PMI, which was measured close to 50,0, the threshold value pointed out to a limited slowdown in sectoral operation conditions. Production of manufacturing industry showed a slight increase in November and accordingly, the first increase has been experienced in manufacture since April 2018.

Istanbul Chamber of Industry Istanbul Manufacturing PMI increased to 54,2 in November and pointed out to a strong improvement in operation conditions. Therefore, the sector has gained strength for the third time in a row and the improvement of November realized in the highest speed since February 2018.

The results of the ICI Türkiye and Istanbul Manufacturing PMI (Purchasing Managers Index) 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 November 2019.

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 49,0 in October increased to 49,5 in November. Therefore, the index which was measured close to 50,0, the threshold value pointed out to a limited slowdown in sectoral operation conditions. Production of manufacturing industry showed a slight increase in November and accordingly, the first increase has been experienced in manufacture since April 2018.

On the other hand, new orders maintained their slowdown based on the existence of fragilities in customer demand. However, this slowdown lost speed compared to October and realized in a very moderate level. A similar situation was experienced in new export orders. Accumulated works maintained their decreasing tendency in November. Besides, firms decreased the number of labor force in November following the employment increase experienced in the previous two months in a row. Inflation of input costs receded to the lowest level of the last 58 months in November; and several firms specified a decrease in raw material costs. Various survey participants expressed that upside price pressure maintained its existence as the result of the weakness in monetary unit. However, it was seen that this problem was brought to the agenda in a lower rate compared to the same periods of the last year. Decrease and competition pressure on the cost inflation caused manufacturers to reduce the final product prices for the third month in a row. The decrease in the prices was realized in a speed close to that in September. Lastly, purchasing activities realized in a horizontal basis in parallel to the production requirements and accordingly, 19-month-decreasing trend came to the end.

Andrew Harker, Deputy Director of IHS Markit said that: The most crucial finding in the last PMI survey was that the manufacture has moved into the growth zone for the very first time since a break lasting for more than one and a half year. The growth which was realized in a moderate level showed that the belief of firms has improved towards that the market conditions have increasing tendency. We might foresee that the data of industrial manufacture in November will point out to an annual growth based on the relations between PMI index and the data of industrial production.

Istanbul Manufacturing PMI increased to 54,2 in November

Istanbul Chamber of Industry Istanbul Manufacturing PMI which was measured as 53,6 in September increased to 54,2 in November and pointed out to a strong improvement in operation conditions. Therefore, the sector has gained strength for the third time in a row and the improvement of November realized in the highest speed since February 2018. The growth in new orders reached to the highest level of the last 21 months based on the economic conditions which have gained strength. New export orders increased; however, this increase remained limited compared to that in the total new orders. Increase in the new orders and general improvement in the market conditions reflected to the manufacture of Istanbul manufacturers as an obvious increase. Expansion in the manufacturing volume gained speed for the second month in a row and was recorded in the highest rate since February 2018.