Turkey Manufacturing PMI

The Istanbul Chamber of Industry Turkey PMI Manufacturing Index rose to 49.5 in November 2019 from 49.0 in the previous month, as output grew for the first time in over a year-and-a-half due to improving market conditions. Meanwhile, both new orders and new export business fell at softer rates. At the same time, purchasing activity stabilized, ending a 19-month sequence of moderation; while firms scaled back their workforce numbers following expansions in each of the previous two months. On the price front, input cost inflation slowed to the weakest since January 2015 on the back of lower raw material costs, while manufacturers lowered their output prices for the third month running, with the pace of reduction broadly similar to that seen in October.

The Istanbul Chamber of Industry Turkey PMI Manufacturing Index fell to 49.0 in October 2019 from 50.0 in the previous month, pointing to a slight moderation of the health of the sector after stabilization in the previous month. New orders softened, reversing the growth seen in the prior month, as demand weakened in both domestic and export markets. At the same time, backlogs of work continued to moderate, albeit to the least extent for 20 months. In addition, purchasing activity, stocks of purchases and finished goods inventories were all scaled back during the month. Meanwhile, employment rose for the second straight month, the first time that back-to-back rises in workforce numbers have been recorded since early 2018. On the price front, input cost continued to increase on the back of currency weakness and higher electricity prices, and output charges posted the second straight month decline.

The Istanbul Chamber of Industry Turkey PMI Manufacturing Index rose to 50.0 in September 2019 from 48.0 in the previous month, pointing to a stabilisation of the health of the sector after 17 consecutive months of contraction. Employment rose for the first time in 14 months and new orders expanded for the first time in a year-and-a-half, while new export sales continued to fall and output was unchanged. In addition, purchasing activity, stocks of purchases and finished goods inventories were all scaled back during the month. On the price front, input cost inflation softened to a three-year low due to a recent period of relative stability in the currency, and output charges posted the first decline in eight months.

The Istanbul Chamber of Industry Turkey PMI Manufacturing Index rose to 48.0 in August 2019 from 46.7 in the previous month, pointing to the weakest pace of contraction in the manufacturing sector since July 2018. New orders fell the least in the current 17-month sequence of moderation, amid some panel reports of improving customer demand; while employment levels were broadly stable, following 12 months of declines. Also, purchasing activity and inventories of both pre- and post-production items were scaled back, but to lesser extents than in July. On the price front, both input costs and output prices rose at weaker rates in August.

The Istanbul Chamber of Industry Turkey PMI Manufacturing Index dropped to 46.7 in July 2019 from 47.9 in the previous month, pointing to a steeper contraction in the manufacturing sector. Total new orders continued to fall amid challenging market conditions, particularly domestically while export order flows were unchanged. Production requirements continued to be reduced, however, leading both employment and purchasing activity to be scaled back. Slower input buying and sufficient stock holdings at suppliers contributed to the first improvement in delivery times for 27 months. On the price front, inflationary pressures showed signs of waning in July.

The Istanbul Chamber of Industry Turkey PMI Manufacturing Index rose to 47.9 in June 2019 from the previous month's 45.3, pointing to the softest contraction in the health of the sector since July 2018. New export orders returned to growth amid reports of improving customer demand in international markets, helping lead to a much weaker slowdown in total new business. Output, employment and purchasing activity also declined at slower rates. As a result, stocks of purchases were reduced to a lesser extent than in May. On the price front, inflation of both input costs and output prices eased slightly in June.