Turkish manufacturing sector continues to grow
Growth in the goods-producing sector was mainly down to higher underlying demand, which led companies to scale up output and purchasing activity.
Meanwhile, the rate at which workforce numbers increased was the fastest in 34 months, thereby easing the pressure on manufacturers’ capacity and helping companies to work through their outstanding business.
Elsewhere, November data signalled further inflationary pressures driven by unfavourable exchange rates.
The headline Istanbul Chamber of Industry Turkey Manufacturing PMI is a composite single-figure indicator of manufacturing performance.
It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
Any figure greater than 50.0 indicates overall improvement of the sector.
The PMI registered at 52.9 in November, up from 52.8 in October.
The headline figure signalled a solid overall improvement in business conditions.
In fact, the latest reading marked the ninth consecutive month of growth in the Turkish manufacturing sector - the longest seen since 2014.
Furthermore, the headline PMI remained well above its long-run trend level of 50.8.
For the tenth successive month, output increased at Turkish manufacturers, buoyed by robust demand.
Survey data signalled that total new business continued to increase more sharply than new export orders.
Meanwhile, manufacturing capacity in Turkey expanded further in November.
Notably, the rate of employment growth was the fastest in almost three years, as businesses attempted to accommodate higher volumes of new orders.
Furthermore, purchasing activity rose for the ninth consecutive month and at a solid rate.
As a result, outstanding business declined for the third month in a row.
That said, pre-production inventories at Turkish manufacturers declined, having increased slightly in October.
Elsewhere, cost inflationary pressures increased across the Turkish manufacturing sector in November.
Respondents overwhelmingly pointed to unfavourable exchange rates as the main factor influencing the increase in cost burdens. ■