Istanbul Chamber of Industry Turkey and Istanbul Manufacturing PMI December 2019 Reports Were Announced
Istanbul Chamber of Industry Turkey Manufacturing PMI (Purchasing Managers Index), the fastest and most reliable reference for the manufacturing industry’s performance that is the leading indicator of economic growth did not experience any change in December and was recorded as 49,5 and it pointed out a slight slowdown in activity conditions. Besides, the value for December was measured above the average of 2019.
Istanbul Chamber of Industry Istanbul Manufacturing PMI recessed to 52,6 in December; however, a strong sectoral improvement drew attention. Activity conditions were strengthened for four months respectively. New orders continued to increase and maintained its increase tendency for the fifth month.
The results of the ICI Turkey and Istanbul Manufacturing PMI (Purchasing Managers Index) 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 December 2019.
According to the survey results where any figure above the threshold of 50 is an indication of improvement in the industry, Turkish Manufacturing Industry PMI which was measured as 49.5 in November did not experience any change in December and recorded as 49,5 and pointed out to a slight slowdown in activity conditions. Besides, the value for December was measured above the average of 2019.
Production recorded an increase for the second month in a row during the last month of 2019. Even though the increase had a moderate level, it gained strength compared to November. Survey participants expressed that improvement indicators in new orders encouraged production increase. New orders which showed a very limited slowdown mostly maintained its consistent appearance. Acceleration lost continued in new export orders; however, the decrease realized in the lowest rate of the last five months. Slowdown experienced in employment for two months respectively showed that manufacturers have the adequate labor force to meet the existing workload. Reduction in the accumulated works supported this situation.
Firms accelerated their purchasing activities based on the increase in the production requirements in December. This help input purchases have a horizontal nature following a-two-year decrease. Final product stocks continued to recess based on the inadequacy of growth speed in manufacture to support stock increase. Input costs inflation which recessed to the lowest level of approximately last five years in November increased in the last month of the year; however, it clearly stayed under the average of the series. Firms stating that input prices increased expressed that this situation caused by the weakness at the currency unit. Increase in cost loads caused a slight increase in sale prices of firms and three-month-decrease tendency in prices came to end.
Andrew Harker, Deputy Director of IHS Markit said that: “According to the latest PMI data, Turkish manufacturing sector maintained its recovery path at the end of 2019. This points out that the sales recorded in the official industry production data of the last period will maintain their existence. Even though the ongoing challenging activity conditions and existing weakness in international demand environment, manufacturers look 2020 though a more confident perspective compared to the previous year.
İstanbul Production PMI became 52.6 in December
ICI Istanbul Manufacturing PMI which was recorded as 54,2 in November recessed to 52,6 in December; however, a strong sectoral improvement drew attention. Activity conditions were strengthened for four months respectively. New orders continued to increase and maintained its increase tendency for the fifth month. The growth was recorded in a strong level even though it lost acceleration compared to November. Survey participants expressed that the reason of the increase in new orders is the improvement in market conditions generally. New export orders increased as well; however, this increase realized in lower rate compared to the total new orders.