Turkish manufacturing activity jumps to highest in nine years -PMI

New export orders also rose, albeit to a lesser extent than total new business

  

ANKARA - Turkish manufacturing activity grew in July at the fastest rate in nine years as the country eased its measures aimed at tackling the coronavirus pandemic, a survey showed on Tuesday.

The headline PMI rose to 56.9 in July from 53.9 in June, recording its highest reading since February 2011, according to survey data from the Istanbul Chamber of Industry and IHS Markit.

A broad re-opening of the economy beginning on June 1 and a return of business for customers brought the second monthly rise in new orders at Turkish manufacturers. The expansion rate was among the fastest since the survey began in June 2005.

New export orders also rose, albeit to a lesser extent than total new business.

The latest PMI survey data signalled the sector is strengthening after the pandemic brought a sharp downturn beginning in March. July saw jumps in expansion in both output and new orders, with capacity pressures emerging and firms taking on additional staff.

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.

(Writing by Ece Toksabay; Editing by Jonathan Spicer and Hugh Lawson) ((ece.toksabay@tr.com; +90 312 2927022; Reuters Messaging: ece.toksabay.reuters.com@reuters.net))

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