PMI for manufacturing sector hits 54.3 in August, above threshold level to signal solid monthly improvement in businesses
Manufacturing operating conditions in Turkey continued its recovery in August thanks to strong customer demand supporting further marked increases in output and new orders, according to a closely watched business survey released Tuesday.
Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector hit 54.3 last month, showed London-based global data firm IHS Markit’s monthly report, prepared in collaboration with the Istanbul Chamber of Industry.
Despite slipping from 56.9 in July, August PMI was still comfortably above the 50.0 no-change mark to signal a solid monthly improvement in business conditions.
Companies in Turkey expanded their purchasing activity and employment thanks to promising customer demand with new orders rising at a marked pace that was among the fastest in the past two-and-a-half years.
The report stressed that weakening of Turkish lira against the US dollar led to accelerating inflation of both input costs and output prices.
“In response, firms raised their own selling prices to the greatest extent in 23 months,” it added.
After rising at the steepest pace in over nine years in July, the pace of expansion in production softened but remained sharp, it noted.
Commenting on the August reading, Industry and Technology Minister Mustafa Varank said Turkey distinguishes itself positively, leaving behind other countries such as the US, Sweden, China, Germany, Ireland, India, Russia and Indonesia.
“Eight out of ten sectors posted growth,” Varank said, underlining that the largest rise was seen in the basic metal industry.