Istanbul industrial output growth fastest in 4 years
Output of Istanbul manufacturers grew at the fastest pace in four years, helped by higher demand and new business, according to a monthly survey.
The Istanbul Manufacturing PMI climbed to 55.1 in January from 53 in December, IHS Markit and the Istanbul Chamber of Industry reported on Thursday.
“Goods producers expanded their productive capacity by continuing to increase workforce numbers as well as their purchasing activity, which enabled further progress on work-in-hand,” they said.
“The expansion in productive capacity enabled manufacturers in the city to tackle their backlogs in January. That said, holdings of finished goods declined at a strong rate as orders climbed.”
Cost pressures, however, remained strong, leading firms to increase their prices, they said.
“Input prices rose reflecting higher raw materials costs and unfavourable exchange rates. However, input price inflation eased, which was also the case for the rate of increase in average selling prices.”
The index 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.