Manufacturing capacity utilization sees modest dip in July
ANKARA
The seasonally adjusted Capacity Utilization Rate (CUR) in the manufacturing sector declined by 0.3 points in July 2025, settling at 74.1 percent, data from the Central Bank showed on July 25.
This marks a slight slowdown in industrial activity compared to the previous month.
The unadjusted CUR also fell, decreasing by 0.4 points to 74.2 percent.
The data said that the highest utilization this month was 74.7 percent in intermediate goods, down from 75.1 percent in June.
Meanwhile, the lowest utilization rate was 71.1 percent in investment goods in July, also down from 71.9 percent in the previous month.
Capacity utilization is a key indicator of industrial performance, reflecting the extent to which manufacturers are using their available resources.
The Central Bank separately reported on July 25 that the seasonally adjusted Real Sector Confidence Index (RSCI) increased by 0.5 points in July 2025, reaching 98.9, just a touch below the neutral threshold of 100.
According to the bank’s monthly survey, positive contributions to the index came from expectations for production volume, total employment, fixed capital investment, overall business outlook and export orders over the next three months.
However, the index was partially offset by weaker assessments of current total orders, orders received over the past three months and current inventories of finished goods, which exerted downward pressure on overall confidence.
Meanwhile, the unadjusted RSCI declined slightly by 0.1 points, settling at 100.2.
Also on July 25, the Turkish Statistical Institute’s (TÜİK) seasonally adjusted confidence indices for July revealed a slight decline in the services and retail trade sectors, while the construction sector showed a notable improvement.
In the services sector, the confidence index fell by 0.8 percent month-on-month to 110 points. This decline was driven by lower expectations for future demand and a slight drop in business activity over the past three months.
Confidence in the retail trade industry decreased by 0.5 percent to 107.9, reflecting weaker sales volume and expectations, despite a modest rise in current stock levels.
Confidence in the construction sector rose by 2.2 percent to 88.8, supported by a significant increase in employment expectations for the next three months, even though current order levels slightly declined.
