The Istanbul Chamber of Industry (ICI) Turkey Manufacturing Purchasing Managers' Index (PMI) rose to 54.7 in June, indicating that the overall improvement in operational conditions in the country's manufacturing sector has been at its strongest level since November 2013.
Standing at 52.2 in June, the ICI Istanbul Manufacturing PMI showed that the strong recovery in operating conditions continues in general terms.
The June 2017 results of the ICI Turkey and Istanbul Manufacturing PMI surveys have been announced. They are regarded as the leading indicator of economic growth as well as the fastest and most reliable reference in manufacturing industry performance.
According to survey results that indicate all figures measured above the threshold value of 50, pointing to improvement in the sector, the ICI Turkey Manufacturing PMI, which was 53.5 in May, rose to 54.7 in June, indicating that overall improvement in the operating conditions of the manufacturing sector has been at its strongest level since November 2013.
The headline PMI was measured above the long-term average of 50.7 for the fourth month in a row. The PMI increase stemmed from higher rates of new orders, production and employment. Overall improvement of operating conditions in the manufacturing sector was driven by the highest increase in new orders seen since February 2011. In addition, manufacturers' production recorded its highest increases in the last 43 months while employment levels reached their highest figure in the last 29 months. In this respect, companies have reduced their accumulated business, despite increases in new job rates. The latest survey also indicated that inflationary pressures in the sector have been eased further.
Evaluating the ICI Turkey Manufacturing PMI survey data for June, Trevor Balchin, senior economist at Markit, said that the uptrend in the Turkish manufacturing sector's PMI shows that overall performance in the sector has reached its strongest level in the last three-and-a-half years. "The fact that the highest increase in new orders over the last six years has been recorded is particularly noteworthy. This development indicates a positive sign for the third quarter. The annual growth rate of 6.7 percent in recently announced, official industrial production in April confirmed the PMI's recent improvement," he said.