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

• 01.10.2019
• News

The results of the ICI Türkiye and Istanbul Manufacturing PMI surveys, the fastest and the most reliable reference for the manufacturing industry's performance that is the leading indicator of economic growth, were realized as 50,0 in September. Therefore, 17-month-long slowdown tendency in activity conditions ended. New orders’ moving into the growth area again supported the stability gain of the production and slightly increase in the employment.

Istanbul Chamber of Industry Istanbul Manufacturing Industry PMI reached the critical threshold value of 50,0 and realized as 51,9. Pointing out to a moderate strength in the sectoral activity conditions, PMI pointed out to a recovery for the first time since July 2018.

The results of the ICI Türkiye and Istanbul Manufacturing PMI 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 September 2019.

Given that the any figure above the threshold of 50 is an indication of improvement in the industry, Turkish Manufacturing Industry PMI realized as 48,0 in August increased to 50,0 which is considered as the threshold value in September. After the sector had a more stable overview, 17-month-long slowdown tendency in the activity conditions ended.

New orders showed a growth for the first time in the last one and a half year term in September. Slowdown maintained its existence in new export orders. Increase in the total new orders encouraged some firms to increase the production at the end of the third quarter. On the other hand survey participants stated that challenging economical atmosphere maintained its existence. So, the production in September realized in a horizontal way. Upon the start of the growth in new orders once again, the employment recorded an increase for the first time in last 14 months. However, increase in the employment realized in a very limited level as in the new orders. Input costs inflation was recorded in the lowest level of the last three years in September by decreasing for four months. While the input costs continued to increase because of the weakness in Turkish Lira, respective stability ensured in the currency unit in the last term was stated to support the slowdown in the inflation. Decrease in the pressure on the costs in September provided opportunity for manufacturers to decrease sale prices for the first time in the last eight months. While the new orders are moving into the growth area, unwillingness of the manufacturers to increase their stocks continued with the impact of the on-going challenging market conditions. Therefore, purchasing activities, input stocks and final product stocks receded in September.

Andrew Harker, Deputy Director of Markit said that: “The most critical positive finding in the latest data of Turkish PMI survey is that the new orders moved into the growth area. So, the production gained speed and increase in the employment ensured. If the current tendency continues, the data is pointing out that the growth in the last quarter of 2019 might be strengthened and firms might get some positive news after this challenging period.”

İstanbul Production PMI increased to 51.9 in September.

Istanbul Chamber of Industry Istanbul Manufacturing Industry PMI which had been measured as 49,6 in August reached the critical threshold value of 50,0 and realized as 51,9. The index pointed out to a moderate strength in sectoral activity conditions, and so a recovery realized for the first time since July 2018. Indications regarding the strength in the demand became distinctive in the recovery of the activity conditions. While the new orders were increasing subsequently for two months, the increase was realized in a strong speed and in the highest rate since February 2018. Increase in the new export orders was recorded in a moderate level. Production increased as parallel to the recovery in the new orders. To, the production showed a second increase in the last 3 months. Manufacturers increased both the employment level and their purchase activities to support the growth in the production. Speed of employment creation realized in the highest level since March 2018 and input purchase recorded increase for the first time in the last 15 months. Increase in the input prices was measured in the lowest rate recorded since January 2015 and clearly under the serial average. Regression in the cost inflation provided opportunity for the manufacturers to decrease final product prices. Along with the moderate decrease recorded in the prices, six-month-long inflation in the final product prices ended.