Istanbul Chamber of Industry Announces Türkiye and Istanbul Manufacturing PMI March 2019 Reports

  • 01.04.2019
  • News
PMI-mart2019-01_ENG

Istanbul Chamber of Industry Türkiye Manufacturing PMI (Purchasing Managers Index), the most reliable reference for the manufacturing industry’s performance that is the leading indicator of economical growth was recorded in the highest level since July 2018 by reaching to 47,2 in March. Slowdown in manufacture and employment was realized at the slowest speed in the last eight year

Istanbul Chamber of Industry Istanbul Manufacturing PMI was measured as 46,7 in March and thus it pointed out that the slowdown in the manufacturing sector of the city was continued. However, the most modest slowdown in the manufacturing was observed. Decrease in the employment realized in a limited way and this was considered as an indicator of improvement.

The results of the ICI Türkiye and Istanbul Manufacturing PMI surveys, the fastest and the most reliable reference for the manufacturing industry's performance that is the leading indicator of economical growth, were declared for the term March 2019. Given that the any figure above the threshold of 50 is an indication of improvement in the industry, Istanbul Chamber of Industry Turkish Manufacturing PMI which was measured as 46,4 in February increased to 47,2 in March and recorded as the highest level since July 2018. Therefore, activity conditions were decelerated on a monthly basis during the last one year. However, deceleration speed in March was realized in a modest level compared to the average of the term.

Slowdown in the manufacturing was realized in the lowest speed of the last eight year as based on improvement consideration of some survey participants. However the challenging market conditions maintained their existence and caused the deceleration in the new orders. While a slowdown in new export orders was observed, the firms declared that they have experienced a slowdown in European market. Similar to the manufacturing, employment volume has decreased in the lowest speed of the last eight months. While a modest decrease has been realized in the accumulated works since February 2018, this situation bore the signals of capacity repression arising in the sector. Input costs inflation recorded an increase in the end of the first quarter. The survey participants stated that this situation mostly resulted from the deceleration experienced in Turkish Lira. Final product prices were increased in two months successively and this increase was accelerated compared to February. However, inflation in final product prices maintained its relatively modest maintenance like just as in the input costs.

Andrew Harker, Deputy Director of Markit, who evaluated survey data of Istanbul Chamber of Industry, Türkiye Manufacturing PMI, said: “Realization of the slowdown in both manufacturing and employment in the slowest speed observed since the mid of 2018 points out to the light which is appearing at the end of the tunnel for Turkish manufacturing sector. Because of the decelerated maintenance of the demand, receiving new orders continues to be one of the most challenging difficulties while the sector is becoming closer to gain of stability in general.

İstanbul Manufacturing PMI became 46.6 in March

Istanbul Chamber of Industry measured as 46,6 in March was realized very close to the level of 46,7 in February and it pointed out that the clear slowdown in Istanbul manufacturing sector has continued. However, while the most modest slowdown in the last eight months in the manufacturing was observed, the limited realization of the decrease in employment pointed out to the signals of recovery. As a reflection of the increase in the cost inflation, the final product prices increased for the first time in the last four months. Notwithstanding, the increase in both input and final product prices were realized clearly under the below of the levels in 2018. New orders of Istanbul manufacturers decelerated as based on the maintenance of the challenging economical conditions. Furthermore, this slowdown was recorded as the highest speed since the beginning of 2019. Acceleration lost in new export orders was realized in much slightly compared to those in the total new orders.