Skyline at golden hour in Turkey

Turkey PMI December 2017

Turkey: Solid demand reinvigorates growth in the manufacturing sector

The manufacturing sector closed the year on a strong note, with operating conditions in the sector at their strongest in four months. The manufacturing Purchasing Managers’ Index (PMI) produced by the Istanbul Chamber of Industry (ICI) and IHS Markit recorded a back-to-back increase to 54.9 in December from 52.9 in November. The PMI now lies further above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has now been for ten consecutive months.

The December report showed stronger demand fueling robust activity in the sector. Domestic new orders remained solid, while new orders from abroad grew at the fastest pace in nearly seven years. Firms’ output growth accelerated to a three-month high, which in turn was supported by healthy employment growth during the month. In fact, firms increased their staffing levels at the quickest rate since March 2011, which allowed companies to remove some capacity pressure and work through existing business. Data from the Central Bank of the Republic of Turkey (CBRT) shows that the manufacturing capacity utilization rate eased from the fresh nine-year high of 79.9% recorded in November to 79.0% in December.

Solid demand also led to more intense purchasing activity among companies, which contributed to a modest increase in input inventories. Regarding prices, an unfavorable exchange rate continued to put pressure on companies’ margins through higher input prices, but they were largely able to pass costs onto consumers.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest