Istanbul Chamber of Industry Announces Turkey and Istanbul Manufacturing PMI Reports for December 2017
In December, Istanbul Chamber of Industry Turkey Manufacturing PMI (Purchasing Managers Index) rose to 54.9, signifying a very strong improvement -in fact the strongest since August- for operating conditions of the Turkish manufacturing industry. December also saw the sharpest rise in new export orders since February 2011. Employment, on the other hand, increased at the highest pace since March 2011 and supported production growth.
Istanbul Chamber of Industry’s Istanbul PMI climbed to 53.0, indicating another improvement for the Istanbul manufacturing industry’s operating conditions for nine months straight.
Istanbul Chamber of Industry announced the Turkey and Istanbul PMI (Purchasing Managers’ Index) Manufacturing survey results for December 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. In this survey, the results above the threshold of 50.0 mark sectoral improvement. And the Istanbul Chamber of Industry’s Turkey Manufacturing PMI is measured at 54.9 in December, up by 52.9 of November, which reveals that the Turkish manufacturing industry sustains its solid improvement in the operating conditions, more specifically, the strongest since August. The index was recorded at well above the long-term average, and the growth trend was carried over to the tenth month.
In December, new export orders saw the highest rise since February 2011, which accelerated the growth in combined new orders. With this growth in new orders, Turkish manufacturing industry’s production volume expanded for the eleventh successive month, at the highest rate of the past three months. The fastest rise of employment since March 2011 supported the growth in production. Increased production capacity enabled companies to reduce their accumulated works. The powerful trend in new orders encouraged companies to expand their procurement activities in December. The escalation in input procurement contributed to a modest growth in input stocks. Negative developments in the FX market drove a surge in companies’ input prices. In the face of this uptrend, companies raised the prices of finished goods. Still, price inflation for the finished goods recessed in comparison to that of the previous month.
Gabriella Dickens, IHS Markit Senior Economist, commented on the Istanbul Chamber of Industry’s Turkey PMI Manufacturing survey results: “With the ongoing uptrend in production and new orders, the growth of Turkish manufacturing industry gained momentum at the end of 2017. New export orders improved at the highest level witnessed since February 2011, which encouraged companies to increase employment rapidly”.
Istanbul Manufacturing PMI up to 53.0 in December
In December, Istanbul Chamber of Industry’s Istanbul Manufacturing PMI rose to 53.0 from 51.5 in November, indicating further improvement in the operating conditions of the Istanbul manufacturing industry, and the continuation of the nine-month uptrend. Moreover, the index was read significantly above the long-term average of 50.6. December was the ninth successive month of growth for Istanbul manufacturers’ new business volume. Istanbul manufacturers continued to expand their production in December, as a reflection of the trend in new business volume. The uninterrupted growth trend reached its tenth month, marking the longest trend of around the last seven years. Employment growth gained momentum compared to previous month, hitting a six-year high. Companies increased procurement activities which led to a decrease in accumulated works. The increase in procurement activities also led to prolonged supplier delivery terms.