Turkey's manufacturing index surges in March

Turkey's Purchasing Managers' Index (PMI) for the manufacturing sector was 52.3 points in March, showing one of the largest month-on month increases in the headline figure in the 12-year history of the survey, according to a report from IHS Markit on April 3.

The Istanbul Chamber of Industry PMI Manufacturing Index report, prepared in cooperation with IHS Markit, showed a 2.6-point advance from the previous month, showing the strongest overall improvement in operating conditions since February 2014.    
   
The report showed that production increased at the fastest rate in over three years thanks to new orders rising at the strongest pace since December 2015.        

The robust advance in production also helped an increase in manufacturing employment - the fastest since February 2015 - and higher purchasing activity.        

"The Turkish PMI rose sharply in March to signal the strongest overall improvement of the Turkish manufacturing sector in over three years," said Trevor Balchin, senior economist at IHS Markit.        

"Output and jobs increased at stronger rates as new business growth resumed. Price pressures also showed signs of easing during the month," Balchin added.        

With this solid improvement, the PMI also climbed above 50.7 points, its long-run trend level.    
    
Turkey's PMI for the manufacturing sector is seen as an important gauge in tracking the health of the sector, with values below 50 points showing contraction while above indicates expansion.