Production accelerates in Turkey and Europe

ISTANBUL / LONDON - Reuters

Turkey’s manufacturing Purchasing Managers Index increased to 55 percent in November as the Eurozone’s PMI rose to 51.6 percent. DAILY NEWS photo

Turkey’s manufacturing Purchasing Managers Index (PMI) increased to 55 percent in November, the highest rise in the last 2.5 years, thanks to a significant rise in new product orders and in production volume. The increase is in line with an increase in the manufacturing PMI of the eurozone, which is at its highest levels since June 2011.

The Markit index of manufacturing sentiment rose to a 32-month high of 55 percent in Turkey, mainly due to the rise in the sub-section of the production sector, which jumped to 56.7 percent. Turkish purchasing managers said both domestic and foreign demand had risen in November. One of four companies increased their production levels, causing purchasing managers to up their buying activities.

Some 30 percent of participants observed increases in input prices in Turkey, including in oil prices.

Buoyant demand for manufactured goods drove eurozone factory activity to accelerate at its fastest pace in over two years last month and allowed firms to build up a small backlog of work. But that growth was still weak and Markit, the compiler of the Purchasing Managers’ Indexes, said evidence of a renewed downturn in France and Spain - as well as firms cutting staff - was disappointing.

Eurozone PMI also rises

“The November manufacturing PMI surveys bring good news on the whole, but suggest there’s still a lot to worry about in terms of the health of the eurozone economy. The big concern is France,” said Chris Williamson, chief economist at Markit.

Markit’s Eurozone Manufacturing PMI rose to 51.6 last month from October’s 51.3, just pipping an earlier flash reading of 51.5. An index measuring output nudged up to 53.1 from 52.9.

November was the fifth month the index was above the 50 level that denotes growth, and the reading was the highest since June 2011.