Business confidence rises, but factory utilization slips

ANKARA

Türkiye’s seasonally adjusted Real Sector Confidence Index increased by 1.7 points in August from the previous month to 100.6, moving above the 100‑point threshold for the first time since April.

However, the seasonally adjusted Capacity Utilization Rate (CUR) in manufacturing fell by 0.5 points to 73.6 percent, the Central Bank said on Aug. 25.

Positive contributions to the confidence index came from recent order levels, the general business situation, inventories, and export orders for the next three months, according to the Central Bank.

On the other hand, fixed capital investment spending, current total orders, expected production volume, and employment projections for the same period weighed on the index, said the bank.

The sub‑index for the general business situation climbed to 91.5 in August from 86.3 in July, while the export orders index for the next three months rose from 111.1 to 114.1.

The unadjusted Real Sector Confidence Index also inched up by 0.4 points to 100.6 in August.

Separately, data from the Turkish Statistical Institute (TÜİK) on Aug. 25 painted a mixed picture across sectors.

The services sector confidence index increased by 1.1 percent after a 0.9 percent decline in July, and the retail trade sector gained 0.8 percent following a 0.5 percent drop.

In contrast, confidence in the construction sector fell sharply by 4 percent, reversing July’s 2.2 percent increase.

The seasonally adjusted Capacity Utilization Rate (CUR) in the manufacturing industry slipped by 0.5 points to 73.6 percent, data the Central Bank released on Aug. 25 also showed.

By sector, investment goods producers operated at 68.1 percent capacity in August (down from 71.1 percent) and intermediate goods firms held steady at 74.7 percent.

Consumer goods companies worked at 72.1 percent, slightly lower than July’s 72.3 percent.

In August, capacity utilization in the durable consumer goods sector fell to 70.3 percent from 71.4 percent in July, while the non‑durable consumer goods sector remained unchanged at 72.5 percent.