Turkey's economic activity rises in June: IHS Markit

Turkish manufacturing sector's PMI reaches 54.7, signaling strongest improvement since Nov. 2013

By Tuba Sahin

ANKARA (AA) - Turkey’s Purchasing Managers’ Index (PMI) for the manufacturing sector rose by 1.2 percent from the previous month, according to a closely-watched business survey on Monday.

IHS Markit’s monthly purchasing managers’ index -- prepared in collaboration with the Istanbul Chamber of Industry -- reached 54.7 in the month from 53.5 in May.

The latest PMI report revealed how rise reflected stronger growth in new orders, output and employment.

Turkey's manufacturing operating conditions in June hit their strongest level since November 2013 on the back of the fastest gain in new orders of six years, the report said.

"Manufacturing new orders in Turkey rose at the sharpest rate since February 2011 in June," the report read.

Research showed that output and employment in the manufacturing sector recorded their strongest rates over the last 43 and 29 months, respectively.

"This helped firms to cut backlogs despite the sharper gain in new work," it said.

According to the report, inflationary pressures on the sector also weakened in the month.

Production also grew to reach its highest level over the last 43 months as companies worked on existing contracts and received new orders.

Trevor Balchin, senior economist at IHS Markit, said the increase in new orders was a positive sign for growth in the third quarter of 2017.


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