Turkey PMI: PMI remains in growth position for 10 months

According to the data announced by the Istanbul Chamber of Industry (ISO) and IHS Markit; Manufacturing PMI increased from 51.7 to 52.6 in March. The manufacturing PMI index, which was 33.4 in April due to the economic recession caused by Covid-19, recovered in the following months and was in a growth position as of June. The index, which increased in March, shows that the recovery momentum continues. The index remained in a growth position for 10 months after June.

If we look at the details of the PMI data; The momentum gained again after the slowdown in new orders seen the previous month. New export orders, on the other hand, grew faster than total new orders, revealing that demand conditions were better. Depending on the increasing momentum in new orders, there was an increase in production and employment. However, the ongoing difficulties in raw material supplies prevented a larger acceleration. On the other hand, inflationary pressures increased in the framework of both the continuity of supply-based problems on a global scale and the depreciation of TRY in March. Raw material and production costs are under double-channel increasing pressure.

The growth trend in the industry continues. However; In addition to the problems caused by Covid, the uncertainty regarding exchange rate and interest movements, on the other hand, increasing production costs and final goods prices are observed as the main factors determining the growth momentum. While leading indicators point to a good growth momentum in 1Q21, the uncertainty factors we have listed will determine the range of deviation from growth projections.

Kaynak Tera Ytairim
Hibya Haber Ajansı