Istanbul Chamber of Industry Turkey Manufacturing PMI January 2020 Report Was Announced

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PMI-ocak2020-01_eng

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 increased to 51,3 in January and realized over 50,0 which is the threshold value for the first time in the period of 22 months and pointed out a moderate improvement in activity conditions.

Improvement in the demand enabled new orders to move into growth region. New export orders increased and ended the decrease trend of five months. Manufacturers expanded the production for the third month subsequently upon the increase in the new orders and the first increase of the last three months was recorded in the employment.

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 economic growth, were declared for the term January 2020.

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 increased to 51,3 in January and realized over 50,0 which is the threshold value for the first time in the period of 22 months and pointed out to a moderate improvement in activity conditions.

Improvement in the demand enabled new orders to move into growth region. Growth speed was moderate and it was realized in the strongest level since March 2018. New export orders increased and ended the decrease trend of five months. Increase in the new orders enabled manufacturers to expand the production for the third month subsequently. Besides, the increase in the production was realized in the highest level approximately in the last two years. Increase in the growth of production enabled firms to reduce their accumulated works despite of the increase in the new orders. Some firms used their stocks to help meeting the new orders. Consequently, the sharpest decrease observed since July of the last year was observed in the final product stocks.

Employment recorded the first increase of the last three months

Employment recorded the first increase of the last three months. Surveyors stated that need for additional resource which was born by the new projects and work expansion plans accelerated the recruitment processes. Purchasing activities increased in the strongest level and fastest rate observed since February 2018. However, input stocks continued to decrease based on the fact of using inputs in the production processes. Input prices recorded the fastest increase of the last 6 months at the beginning of the year. Survey participants stated that the reason of this increase was mostly the weakness in the currency unit. Besides, input prices were below the serial average of the inflation. A similar table was observed for the final product prices which had been increased in a high rate since June of the last year in addition to maintaining a moderate level.

Andrew Harker, Deputy Director of IHS Markit said that:

“January PMI data pointed out that Turkish manufacturing sector made a positive beginning for 2020. New orders which moved into growth region encouraged firms to accelerate the production more swiftly. Consequently, additional personnel is required to be employed. The relation between PMI data and official data points out to an annual growth performance over five percent in the industrial production at the beginning of the year.”

Istanbul Chamber of Industry Turkey PMI Manufacturing Index (January 2020) Attach