Istanbul Chamber of Industry, Turkey and Istanbul Production PMI June 2018 Reports Were Announced
The results of the ICI Turkey 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 June 2018.
Given that any figure above the threshold of 50 is an indication of improvement in the industry, Turkish Manufacturing Industry PMI which was measured as 46.4 in May increased to 46.8 in June indicating the challenging operating conditions in the Turkish manufacturing industry in the middle of the second quarter. The survey participants named the demand changes and the market conditions as the main reasons of this.
The slowdown of orders both from the domestic and overseas sources was effective in June results. And the production in the industry lost momentum in the last month of the second quarter. Both the slowdown in the new orders and the loss of speed in production were more positive compared to the previous month. The survey participants stated that the slowdown in the new orders is due to demand changes and the slowdown in production is due to market conditions.
The employment index is below the threshold of 50.0, but displays a slight recovery compared to the previous month. The cost burdens increasing with the impact of the developments in the exchange rate caused a high rate of increase in the input costs of Turkish manufacturing industry. Despite of the slight relaxation compared to May, the end product price inflation is recorded high. The survey data indicates that the increase in the end product prices is low compared to input prices and the manufacturers undertake a part of the increase in costs.
Gabriella Dickens, IHS Market Economist, who evaluated survey data of Istanbul Chamber of Industry, Turkey Manufacturing PMI, said: "The latest PMI data indicates that the challenging operational conditions in the Turkish manufacturing industry continued at the end of the second quarter, too. This development is a result of the loss of pace especially in production and new orders, however the slowdown in production and new orders is more moderate compared to previous month. The inflationary pressures stayed strong as a reflection of the developments in the exchange rates."
Istanbul Production PMI increased to 49.5 in June
Istanbul Chamber of Industry Istanbul Production PMI recorded in May as 47.4 level increased to 49.4 in June. The survey data indicated that the slowdown continuing in the Istanbul manufacturing industry since April was at its most moderate level in June. The June data showed that the slowdown in new orders and export continued by weakening compared to the previous month. The growth of production rates in the manufacturing industry for the first time in the last three months is recorded as one of the positive developments in the survey. The firms increased their employment level at the end of the second quarter to increase their capacities. They continued to reduce the amount of unfinished work in June, too. The cost pressures continued to increase in June.