The PMI Composite Index, freed from the seasonal and calendar effect, recessed to the value of 49.0 in November 2020, by decreasing by 0.5 points compared to the previous month.

The decrease of the industrial sector index by 0.2 points compared to the previous month, and recessing to 46.3 had an influence on the loss of speed in the index. And the service sector index increased by 1.9 points compared to the previous month, and went up to 50.4; and restricted the loss of acceleration observed in the Composite Index.

While the new orders and the decreases observed in the input purchases were influential on the recession observed in the industrial sector index in this period, it can be seen in the service sector index that despite the significant increase of input purchases, the slowness in the work load continues.

As a result of these developments, the decrease of the PMI Composite Index, which decreased by 0.5 points compared to the previous month and recessed to 49.0, and which has been freed from the seasonal and calendar effect, started in the previous month and continued throughout the month of November.

Industrial Sector PMI Index

The PMI Industrial Sectors Index, freed from the seasonal and calendar effect, recessed to the value of 46.3 in November 2020, by decreasing by 2.0 points compared to the previous month.

While it is observed that the slow course of new orders continues into this period, the said sub-index decreased by 2.5 points compared to the previous month and recessed to 41.8.

The input purchases that have been observed to increase as of June, when the normalization process began, decreased by 11.8 in November compared to the previous month, and recessed to 43.7.

And the production sub-index which remained at 47.3 despite having increased by 3.0 points compared to the previous month presented with a negative appearance on the industrial sector in November.

While strikes the attention that the companies went for stock consumption during this period when the production and input purchases are slow, the final inventory stock decreased by 7.8 points in this context and recessed to 45.6.

And the increase of the suppliers’ delivery time sub-index by 2.2 points and going up to 55.2 points to the ongoing recovery of the companies in terms of goods and service supply processes.

And the employment sub-index which occurred at 52.4 despite decreasing by 3.7 points compared to the previous month pointed to the ongoing activity in the employments.

The PMI Industrial Sector Index that occurred at 46.3 as a result of these developments continued to appear slow in the last quarter of the year.

Service Sector PMI Index

The PMI Service Sector Index, freed from the seasonal and calendar effect, went up to the value of 50.4 in November 2020, by increasing by 1.9 points compared to the previous month.

The input purchases going up to 65.2 by suddenly increasing by 6.9 compared to the previous month had an influence on this increase that is observed in the index.

And the final inventory stock for the sector increased by 1.6 points compared to the previous month and went up to 42.3, however, continued with its course below the 50 reference value.

Similarly to the industrial sector, the suppliers’ delivery time continued to recover in the service sector as well, and went up to 58.7 by increasing 1.6 points.

And the employment sub-index for the service sector went up to 52.5 by suddenly increasing by 7.2 points compared to the previous month, and gained a significant speed in this period.

The work load of the sector decreased by 2.1 points and recessed to 40.0 as a result of these developments, and continued with its slow appearance in November as well.

The PMI Service Sector Index which increased by 1.9 points and recessed to 50.4 compared to the previous month presented with a positive appearance for the last quarter of the year.

COMMENTS:

PMI, pointing to a recovery for the real sector by going through the periods of July, August and September above the 50 reference value, pointed to a slowness in the last quarter of the year by staying below the reference value in November after October. While it is observed that the loss of speed of the industry sector continues during this period, the 3-month slow appearance ended in the services sector, and the cursor went back on positive. In this context, in the last quarter performance of the PMI Composite Index which recessed two months in a row after going above the 50 reference point throughout the third quarter of the year, the industrial sector data of December will be effective.