Turkey: Manufacturing PMI reaches two-year high in February
Operating conditions in the Turkish manufacturing sector improved at a stronger pace in February and for the second month running, with the Istanbul Chamber of Industry Turkey Manufacturing Purchasing Managers’ Index (PMI) rising to a two-year high of 52.4 from 51.3 in January.
The improvement in February came on the back of robust growth in output and the strongest rise in new orders in two years as demand dynamics recovered, while employment increased for the second consecutive month in line with greater production requirements. In terms of prices, the continued depreciation of the Turkish lira fueled an eight-month steep rise in input prices; however, this was partially passed on to consumers as output prices rose at the quickest rate since June last year.
Commenting on the data, Eliot Kerr, economist at IHS Markit, which produced the index, stated: “Turkish manufacturers enjoyed a fruitful month [and] these positive results suggest that the sector could be starting a sustained period of growth.”
The sector’s capacity utilization rate, meanwhile, rose from 75.5% in January to 76.0% in February.