Istanbul Chamber of Industry Türkiye and İstanbul Manufacturing PMI December 2018 Reports Were Announced

  • 02.01.2019
  • News
PMI-aralik2018_eng-01

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 economic growth was recorded as 44,2 in December and thus indicated that the business conditions of the sector maintains the deceleration. However, the deceleration in manufacture and new orders were at a slight level compared to the previous month.

Istanbul Chamber of Industry Manufacturing PMI increased 45,2 in December and indicated that the deterioration in the business conditions of Istanbul manufacturing sector happened in the lowest speed of the last four months. Restriction in the deceleration of the manufacture, new orders and employment supported the increase in the headline index.

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 economic growth, were declared for the term December 2018. Given that the any figure above the threshold of 50,0 is an indication of improvement in the industry, PMI which was measured as 44,7 in November increased to 44.2 in December, and thus it indicated that the business conditions of the sector maintain the deceleration.

Challenging business conditions caused the manufacture and new orders to decelerate much more. However, the deceleration in both indicators happened more slightly compared to the previous month. Acceleration lost in new export orders maintained its existence in more restricted way compared to the new employment volume. As a result of deceleration in the manufacture, the employment continued to decrease at the end of the 2018. Also, purchasing activities continued their deceleration in December. Relatively stable progress of exchange rate caused more decrease in the input cost inflation. Increase speed in input cost was regressed three times successively in December after its record level in September and it happened in the lowest level since September 2016. Regression in cost inflation enabled manufacturers to make discounts for their customers to refresh the demand. Therefore, final product prices were regressed for the first time approximately in the last 6,5 years.

Andrew Harker, Deputy Director of Markit, who evaluated survey data of Istanbul Chamber of Industry, Türkiye Manufacturing PMI, said: “Despite of the stability indications in the near term, Turkish manufacturers struggled with challenging market conditions in the last month of 2019. Along with this, there is some relaxation in the inflation side. Firms found the chance to make discount on their sale prices as a part of their efforts to refresh the demand with the effect of the deceleration in the increase of input costs.

İstanbul Production PMI increased to 45.2 in December

Istanbul Chamber of Industry Manufacturing PMI which had been recorded as 44.1 in November increased 45,2 in December and indicated that the deterioration in the business conditions of Istanbul manufacturing sector happened in the lowest speed of the last 4 months. Restriction in the slowness of the manufacture, new orders and employment supported the increase in the headline index. Acceleration lost in the manufacture in December happened in the lowest rate observed since August. Deceleration in total new orders continued to decrease; however, it happened strongly when compared to the moderate deceleration in the new export orders.