İstanbul Chamber of Industry, Türkiye and İstanbul Production PMI June 2019 Reports Were Announced

  • 01.07.2019
  • News
PMI-haziran2019-01_eng

Istanbul Chamber of Industry Türkiye Manufacturing PMI (Purchasing Managers Index), the most reliable reference for the manufacturing industry’s performance that is the leading indicator of economic growth was recorded in the highest level of the last year in with 47,9 in June. Recovery of the index was possible because of the fact that the slowdown in the new orders was recorded in the most moderate level of the last 14 months.

Istanbul Chamber of Industry Istanbul Manufacturing PMI decelerated to 46,5 in June and pointed out a slowdown in the activity conditions of Istanbul manufacturing sector.

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 June 2019. According to questionnaire results in which all numbers measured over 50,0 which is threshold value point our improvement in the industry, İstanbul Chamber of Industry, Türkiye Production PMI which was measured as 45,3 in the previous May increased by 47,9 in June, and it pointed out that deceleration in activity conditions manufacturing industry occurred at the lowest level to be observed since July 2018.

Recovery of the index was possible because of the fact that the slowdown in the new orders was recorded in the most moderate level of the last 14 months. In addition to the indicators towards the recovery of the demand in the international markets, new export orders increased for the first time since February and contributed to the total new orders. The deceleration in the manufacturing and employment at the end of the second quarter was recorded in a more limited scale. Based on the fact that the slowdown in the new orders realized in a lower rate, deceleration of the manufacturers in purchasing activities was realized in a significantly lower rate compared to May and in the slowest speed since April 2018. Accordingly, the decrease in the input stocks lost acceleration compared to the previous month. Inflation of both input costs and final product prices decreased slightly in June. Value lost in Turkish Lira continued to increase the cost burden. Besides, final product prices increased.

Andrew Harker, Deputy Director of Markit, who evaluated survey data of Istanbul Chamber of Industry, Türkiye Manufacturing PMI, said: “There have been some indicators encouraging Turkish manufacturers at the end of the second quarter of the year, and the fact that new export orders have moved to the growth area was the determinant factor here. This development ensured the slowdown in the total new orders to be much more limited. Besides the current level of the PMI index demonstrates that the industrial manufacturing data might be stable at the mids of 2019.”

İstanbul Production PMI became 46,5 in June

Istanbul Chamber of Industry Istanbul Manufacturing PMI which was recorded as 47,1 in May decelerated to 46,5 in June and pointed out a slowdown in the activity conditions of Istanbul manufacturing sector. The last slowdown realized in much more moderate level towards the end of 2018. Total new orders lost acceleration in June. New export orders which have a slowdown tendency in the last seven months were recorded in a stable level without showing any change in June. Based on such developments, the firms decelerated their manufacturing, employment and purchase activities at the end of the second quarter. Besides the slowdown in both employment level and input purchase lost speed in May. Indicators showing that the inflationary pressures softened were observed in June. As a reflection of the weakness in Turkish Lira, input costs increased; however, inflation rate decreased noticeably. Increase in the product prices was realized in the lowest level of the last three months. Both input stocks and final product stocks recorded decrease in June.