Istanbul Chamber of Industry Announces Turkey and Istanbul Manufacturing PMI Reports for July 2017
The Istanbul Chamber of Industry announced the Turkey and Istanbul PMI (Purchasing Managers Index) manufacturing survey results for July 2017. The survey is recognized as the fastest and the most reliable reference for the manufacturing industry’s performance, a key indicator for economic growth.
According to the survey results, which indicate an improvement in the sector across all readings reaching above the threshold of 50.0, the Istanbul Chamber of Industry’s Turkey Manufacturing PMI saw 53.6 in July, marking the continuation of the overall strong improvement in the operating conditions of the manufacturing industry. In July, PMI hit the second highest level since November, 2013, and the fifth strongest over the last six years. Moreover, the headline PMI was recorded above the long-term average for the fifth consecutive month.
The growth in production, new orders, procurement activities and employment remained strong, despite a slowdown compared to last June. In July, new orders in the manufacturing industry grew for the fifth consecutive month. The survey signaled a higher expansion rate in new domestic orders than that of the new export orders. Meanwhile, procurement activities increased for the fifth consecutive month, causing a further extension in suppliers’ delivery times. Input prices inflation continued its decrease for the seventh consecutive month, plummeting to its lowest since September 2016. Likewise, price inflation for end products maintained its downward trend, read at the lowest level over the last nine months.
Trevor Balchin, IHS Markit Senior Economist, commented on the Istanbul Chamber of Industry’s Turkey PMI Manufacturing survey results: “With the continued robust growth in production, new orders and employment in July, the Turkish manufacturing industry made a good start to the third quarter. The PMI hit the fifth highest level over the last six years. Moreover, price pressures were further alleviated in July.”
Istanbul Manufacturing PMI up to 52.3 in July
The Istanbul Chamber of Industry Manufacturing PMI went up slightly in July to 52.3, up from 52.2 in June, indicating the continuation of the overall strong improvement in the operating conditions of the manufacturing industry.
The PMI reached its second highest since November 2014 and above its long-term average (since January 2006) of 50.5. The slight rise above the June PMI was caused by the higher growth in employment, a smaller shrinking in input stocks and the extension in suppliers’ delivery times. Recorded the same as June, the growth in new orders was driven by both domestic markets and export markets. In July, production grew for the fifth consecutive month. Moreover, procurement activities by Istanbul manufacturers grew for the fourth consecutive month. Meanwhile, delivery times increased for the seventh consecutive month.