The Purchasing Managers ' Index (PMI) of Istanbul Industry Chamber and IHS Market climbed from 46.7 in August to 50 in September. In September, the index showed a stabilization in operating conditions after 17 consecutive months in which conditions deteriorated.
September's turnaround followed the first year-and - a-half increase in new orders; domestic new orders increased slightly as export orders fell. In a still challenging environment, performance was stable amid anecdotal evidence that some companies increased production. Notwithstanding this, good and services-producers refused to raise their stock levels, and consequently buying activity dropped. Moreover, in over a year, employment rose for the first time.
That said, job growth was slight. Price-related input price costs decreased for the fourth consecutive month despite currencies depreciation driving up costs. Production prices were first rising in eight months due to softness in input price inflation.
Andrew Harker, associate director at IHS Markit, reported that if the current path were to continue, "the indicators are that the final quarter of 2019 could see growth solidify and provide some pleasant great news for businesses after a difficult time." Contrary to the stabilization of operating conditions, the capacity utilization rate of the Central Bank for the sector dropped by 76.6 percent.
FocusEconomics Consensus Participants expect fixed investments to decline by 9.0% in 2019 and grow by 2.5% in 2020.