Turkey: Manufacturing PMI unchanged in June
The Istanbul Chamber of Industry (ICI) Manufacturing Purchasing Managers’ Index (PMI) was unchanged at May’s 51.5 in June. As such, the index remained above the 50.0 no-change threshold, signaling a continued improvement in manufacturing sector operating conditions from the previous month.
June’s positive reading was spearheaded by stronger output. Firms reportedly scaled up their production due to stronger demand, the ongoing recovery from Q1’s earthquake and a surge in activity after May’s elections. Consequently, manufacturers increased their staff levels at a faster pace and ramped up purchasing activity, which led to longer supply delivery times. Meanwhile, new orders rose again but at a softer rate due to currency weakness. The depreciation of the lira also contributed to stronger input cost and output charge inflation.