ICI Released November 2024 Türkiye Manufacturing PMI and Türkiye Sector PMI Report

• 01.12.2024
• News

ICI Türkiye Manufacturing PMI rose to 48.3 in November, pointing to the least marked moderation of business conditions since May. The rise reflected tentative signs of demand improvement. Production was scaled back to a much lesser extent in November. The main positive from the latest survey was a renewed increase in employment, ending a nine-month period of moderation.

According to the ICI Türkiye Manufacturing PMI survey results, new orders slowed down in nine out of ten sectors in November. The only exception to this trend was the food products sector, where the volume of new business increased strongly, registering the fastest recovery since March. In the other sectors, new orders slowed down, but the month-on-month declines moderated in general. The only sector with a significant slowdown compared to October was textile sector. Input price inflation decreased in all sectors. The number of sectors that increased their number of employees increased to three from two, indicating that there were some signs of improvement on the employment side compared to October. 

The November 2024 period of Istanbul Chamber of Industry (ISO) Türkiye Manufacturing PMI (Purchasing Managers’ Index) survey, which is the fastest and most reliable reference accepted in manufacturing industry performance of the economic growth, was announced. According to the survey results where any figure greater than 50.0 indicates overall improvement of the sector, although the headline PMI posted below the 50.0 mark for the eighth month running in November, at 48.3 the latest reading was up from 45.8 in October and pointed to the least marked moderation of business conditions since May. 

The rise in the headline index reflected tentative signs of demand improvement midway through the final quarter of the year. Although firms continued to face challenges securing new business, rates of moderation in both total new orders and new export business eased from October. Similarly, production was scaled back to a much lesser extent in November, with the latest easing of output the least marked since April. 

The main positive from the latest survey was a renewed increase in employment, ending a nine-month period of moderation. Although slight, the pace of job creation was the sharpest since July 2023. Manufacturers were helped to some extent by waning inflationary pressures. The rate of input cost inflation eased for the fourth consecutive month and was at a two-year low. Where input prices increased, this was linked to higher raw material costs and currency weakness. The pace at which firms increased their output prices also softened and was the slowest in almost five years. Input buying and stocks of purchases moderated, but to lesser degrees than in October. In contrast, stocks of finished goods were scaled back to the largest extent since December 2021. Surveyed firms indicated a second consecutive monthly lengthening of suppliers' delivery times, which was sometimes linked to geopolitical tensions.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing PMI survey data, Andrew Harker, Economics Director at S&P Global Market Intelligence, said: 

"There were definite signs of improvement in the Turkish manufacturing PMI data for November, with output and new orders moderating to much lesser extents than in October. In fact, the latest figures are consistent with increases in official manufacturing production data, based on the historical relationship with the PMI. The most positive aspect of the survey was a renewed rise in employment, suggesting that firms are confident of increases in workloads and the subsequent need for additional staff in the months ahead. A waning inflationary environment likely played a role in the improvements seen in November, with the slowest increase in output prices for five years enticing some customers to make new orders. These inflation trends will hopefully continue in the months ahead, helping to stimulate demand further.”

According to sector PMI, new orders slowed in nine sectors except food

The November Istanbul Chamber of Industry Türkiye Sector PMI report pointed to persistently challenging business conditions in most sectors, but signaled some improvement on the demand side. The easing of inflationary pressures provided some support to firms. The rise in input costs lost momentum in all sectors. 

As in October, new orders slowed in nine out of ten sectors in November, Again with the only exception of food products. The volume of new business increased strongly in this sector, registering the fastest recovery since March. In the other sectors, new orders slowed down, but the month-on-month declines moderated in general. The only sector with a significant slowdown compared to October was textile sector. 

A similar picture emerged in new export orders as in total new business, where declines generally lost momentum. After seven months of slowdown, the chemical, plastic and rubber products sector increased its new orders from abroad. Food products was the only sector that saw an increase on the output side in November, as was the case for total new orders. 

On the other hand, declines in other monitored sectors were more moderate compared to October. Eased cost pressures provided support to manufacturers in November. Input price inflation decreased in all sectors. The slowest increase was observed in chemical, plastic and rubber products, while the lowest inflation was recorded in the non-metallic mineral products sector since the survey started in January 2016. The highest increase in input costs was seen in food products. Food products was also the sector where finished goods prices increased the fastest in November. Non-metallic mineral products and textiles sectors decreased their selling prices, while the decline in textiles was the first in more than a year.

The number of sectors that increased their number of employees increased to three from two, indicating that there were some signs of improvement on the employment side compared to October. The fastest expansion in job creation was in land and sea vehicles sector, but the strong increase in this sector was partly offset by a record decline in the previous month. Similarly, purchasing activity increased in three sectors, but the rise in input stocks was limited to only one sector. The same was true for stocks of finished goods, with only food products showing a month-on-month increase.

You can find attached the Istanbul Chamber of Industry Türkiye Manufacturing PMI and Sector PMI November 2024 reports.