Turkey’s key manufacturing index rises to 43-month high in June

ISTANBUL

Turkish manufacturing activity expanded at its highest pace in more than 3.5 years in June, a business survey showed on July 3, driven by the fastest gain in new orders since February 2011.

The manufacturing Purchasing Managers’ Index (PMI) rose to 54.7 in June from May’s 53.5, staying above the 50-point line that separates expansion from contraction, the Istanbul Chamber of Industry and IHS Markit said in a press release. 

The rise in the PMI reflected stronger growth of new orders, output and employment.

“The Turkish manufacturing PMI continued its ascent in June, signaling the best overall performance of the sector in more than three-and-a-half years. Notably, new orders increased at the fastest rate in over six years, which bodes well for the third quarter. The recent strength of the PMI was corroborated by the latest official IP figures, which revealed annual growth of 6.7 percent back in April,” said Trevor Balchin, Senior Economist at IHS Markit.

The overall improvement in business conditions in the goods-producing sector was the strongest since November 2013, driven by the fastest gain in new orders since February 2011, according to the release. 

Moreover, output and employment at manufacturers increased at the strongest rates in 43 and 29 months respectively, and this helped firms to cut backlogs despite the sharper gain in new work, read the release. 

The latest survey data also revealed a further weakening of inflationary pressures in the sector, it added.