Turkey Manufacturing PMI rose to 52.4 in February

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Turkey Manufacturing PMI rose to 52.4 in February


The latest PMI survey data from Istanbul Chamber of Industry and IHS Markit pointed to a strong performance by Turkish manufacturers in February. Firms registered the quickest improvement in business conditions for two years, driven by solid rises in both output and new orders. 
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 headline PMI posted above the 50.0 no-change mark for the second time in as many months during February, rising to 52.4 from 51.3 in January. The latest reading indicated the fastest improvement in operating conditions across the Turkish manufacturing sector since February 2018. 

The improvement was underpinned by a marked expansion in new business, as firms cited stronger demand from their clients. In fact, the latest increase in new work was the quickest for two years. 
Amid improved demand conditions, goods producers increased output in February, with the pace of growth accelerating to the fastest for almost two years. The solid rise extended the current run to four months. 
Employment grew at the strongest rate since February 2018 in the latest survey period. Panellists commonly attributed the solid rise in staff numbers to increased production requirements. 
On the cost front, input prices faced by Turkish manufacturers continued to rise. In fact, the rate of inflation was the sharpest for eight months. When explaining increased cost burdens, survey respondents often mentioned weakness of the Turkish lira against the US dollar. 
Finally, firms opted to pass on some of the higher costs to their clients, with an increase in average output prices during February. The latest rise was the quickest since last June and marked overall.

Hibya News Agency