Istanbul Chamber of Industry announces Turkey and Istanbul Manufacturing PMI Reports for November 2017
Istanbul Chamber of Industry’s Turkey Manufacturing PMI (Purchasing Managers Index) increased to 52.9 in November, signaling nine months of improvement in a row for the operating conditions of the Turkish manufacturing industry. This also came to be the longest uninterrupted growth trend witnessed since 2014.
In November, Istanbul Chamber of Industry’s Istanbul PMI Manufacturing index was read at 51.5. For the Istanbul manufacturing industry, the PMI for November, although lower than that of October, still indicated improved operating conditions and continued upward trend in the eighth month.
The Istanbul Chamber of Industry announced the Turkey and Istanbul PMI (Purchasing Managers Index) manufacturing survey results for November 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, PMI is measured at 52.9 in November, up from the October PMI of 52.8. The latest survey results demonstrate that the sector grew for ninth successive month, marking the longest uninterrupted growth since 2014. On another note, the index was measured well above 50.8, the long-term average.
With the effect of strong demand, Turkish manufacturing industry's production volume increased in November for the 10th successive month. Survey results indicated that combined new orders continue to outpace new export orders. November was another month of expansion for the Turkish manufacturing industry. In order to respond to increased volume of new orders, companies tripled three year's average employment growth rate. In addition, procurement activities significantly expanded for the ninth consecutive month. In November, pre-production inventory recessed, inflationist pressure on Turkish industrialists increased. Companies stated that the negative developments in FX market were the main reason behind the rise of input costs.
Gabriella Dickens, IHS Markit Economist, commented on the Istanbul Chamber of Industry’s Turkey Manufacturing PMI survey results: “With the ongoing uptrend in production, new orders and exports, Turkish manufacturing industry sustained its strong improvement in November. This reflected a drive by manufacturers for expansion of employment at the fastest pace in 34 months. In keeping with the climbing demand, companies increased the procurement activities.”
Istanbul Manufacturing PMI Read at 51.5 in November
In November, the Istanbul Chamber of Industry’s Istanbul Manufacturing PMI declined to 51.5, down from 53.0 of October. This still signaled an improvement in the operating conditions of the Istanbul manufacturing industry and the uptrend maintained for the eighth month. Moreover, the index was recorded higher than the long-term average of 50.6. Istanbul manufacturers continued to grow their production in November. The growth rate, although slightly slower than that of October, remained strong and above the long-term average. The uninterrupted growth trend of the production reached its ninth month, marking the longest growth trend in six years. Participants largely attributed the production increase to higher demand.