Turkey PMI January 2016

Turkey

Turkey: Manufacturing PMI weakens in January

February 1, 2016

The Manufacturing Purchasing Managers’ Index (PMI), elaborated by the Istanbul Chamber of Industry (ICI) and Markit, fell from December’s nearly one-year high of 52.2 to 50.9 in January. Despite the deterioration, the manufacturing PMI remains firmly entrenched above the 50-threshold that separates contraction from expansion in manufacturing conditions.

January’s print mainly reflected that output, new orders and purchasing activity all continued to expand, albeit at softer rates. On the other hand, input stocks and employment expanded at a faster pace than in the previous month. ICI analysts added that, “Turkey’s manufacturers started 2016 in better shape than a year ago. The PMI has now posted above 50.0 for three months in a row, and is currently in line with its historic average. That said, growth of new orders weakened, casting doubt on the near-term prospects for the sector. New export orders fell, linked to geopolitical factors and uncertainty. Moreover, the weakening currency resulted in renewed pressure on firms’ input prices during the month.”

FocusEconomics Consensus Forecast participants expect industrial production to rise 2.8% in 2015, which is unchanged from last month’s estimate. The panel sees industrial output increasing 3.3% in 2016, which is down 0.1 percentage points from last month’s projection.


Author: Ricard Torné, Lead Economist

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Turkey PMI January 2016

Note: Istanbul Chamber of Industry Turkey Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Istanbul Chamber of Industry and Markit.


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