Istanbul Chamber of Industry Announces Turkey and Istanbul Manufacturing PMI Reports for August 2017
The Istanbul Chamber of Industry’s Turkish Manufacturing PMI (Purchasing Managers Index) climbed to 55.3 in August. This increase marked the fastest growth in the Turkish manufacturing industry in the last six and a half years. Production, new orders and employment gained momentum with the manufacturing sector stepping up a gear.
The Istanbul Chamber of Industry’s Istanbul Manufacturing PMI climbed to 54.2 in August, indicating the strongest improvement in the operating conditions of the manufacturing sector since January 2014.
The Istanbul Chamber of Industry announced the Turkey and Istanbul Manufacturing PMI results for August 2017. The survey is recognized as the fastest and the most reliable reference for the manufacturing industry’s performance, which is a key indicator for economic growth. According to the survey results where every reading above the 50.0 threshold value is considered as an indicator for improvement, after measuring at 53.6 in July, the Istanbul Chamber of Industry’s Turkey Manufacturing PMI climbed to 55.3 in August. This has shown that the Turkish manufacturing industry sustains a strong level of overall improvement in its operating conditions. Having hit its highest level since March 2011 with a reading significantly above the long term average of 50.8, the PMI achieved the fastest growth ever in the Turkish manufacturing industry within the last six and a half years.
In August, the manufacturing industry’s new orders increased for the sixth successive month. New domestic orders continued to outpace export orders. The production volume of the Turkish manufacturing industry increased for the seventh consecutive month. The growth rate increased for the third consecutive time in four months and has been at its strongest since March 2011. Companies expanded their capacities to meet the production demand. Compared to July, the increase in employment gained momentum. Moreover, the rate of increase in procurement activities was recorded at the highest level after November 2013. In spite of the accelerating growth in employment, the number of backlog was on the rise during August. Although stagnant since December 2016, the inflation in input prices increased for the first time in August, reaching the highest level since May. The finished goods price inflation increased for the first time in seven months.
Trevor Balchin, IHS Markit Senior Economist, commented on the the Istanbul Chamber of Industry’s Turkey Manufacturing PMI survey results: “In August, the operating conditions of the Turkish manufacturing sector saw its strongest overall improvement in the last six and a half years, enabling the manufacturing sector to operate in higher gears. As a result, the increase in production, new orders and employment gained momentum.”
Istanbul Manufacturing PMI hit 54.2 in August
The Istanbul Chamber of Industry’s Istanbul Manufacturing PMI climbed to 54.2 in August, up from 52.3 in July, indicating the strongest ever recorded improvement in the operating conditions of the manufacturing sector since January 2014. The PMI index measured well above the long term average of 50.5 (since January 2006). In August, four out of five sub-indexes (with the exception of the input inventories sub-index) made a positive contribution to the headline PMI. Compared to July, the increase trend observed in PMI resulted from the high rate of increase recorded in production, new orders and employment, and from the suppliers’ prolonged delivery times.