Istanbul Chamber of Industry (ICI) Announces Türkiye and Istanbul Manufacturing PMI September 2018 Reports

  • 01.10.2018
  • News
PMI-eylul2018_eng-01

ICI Türkiye Manufacturing PMI (Purchasing Managers Index), the fastest and the most reliable reference regarding the performance of the manufacturing industry, had been decreased down to 42.7 in September. The current tough operating conditions were effective in this last state of the index, and both production and new orders continued to slow down in September.

Moreover, ICI Istanbul Manufacturing PMI also dropped down to 43.5 in September, indicating a slow down in the operating conditions of the Istanbul manufacturers for two consecutive months.

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 economical growth, were declared for the term September 2018.

Given that the any figure above the threshold of 50 is an indication of improvement in the industry, PMI, which was measured as 46.4 in August, dropped to 42.7 in September. The current tough operating conditions were effective in this last state of the index, and both production and new orders continued to slow down in September. New export orders slowed down for the first time in the last three months. However, as the weakening of Turkish Lira slightly supported the export, this slowdown in the new export orders was much lower compared to the one in the overall orders. 

The slowdown in production caused the firms to decrease their employment and procurement operations. And the employment level dropped for the second consecutive month. Both the input costs and the end product prices also increased at a record level for the second consecutive month due to the impact of the weakening in Turkish Lira. Moreover, the current challenges prevented the suppliers from getting inputs. And as a reflection, there had been delays in the deliveries of the purchased products. These prolonged delivery times were at its most apparent level as of the June 2005 that this survey was initiated.

Andrew Harker, IHS Markit Assistant Director, evaluated the ICI Türkiye Manufacturing PMI survey data. "The challenges experienced in the operating conditions caused the pressure over the Turkish manufacturers to continue. Continuing to observe strong inflationary pressures in the industry, the customers abstained from placing new orders and this caused disruptions in the supply chain."

Istanbul Manufacturing PMI is 43.5 in September

ICI Istanbul Manufacturing PMI that was measured as 46.3 in August dropped down to 43.5 in September, indicating a slow down in the operating conditions of the Istanbul manufacturers for two consecutive months. The apparent slowdown in the new orders as a reflection of the challenging market conditions was effective in the disruption in the operating conditions of the industry. Following a two-month growth trend, the new export orders dropped in September, too. On the other hand, the loss of value in Turkish Lira supported export partially, enabling the slowdown in new work orders from overseas to be much lighter than the slowdown in overall new orders.