Türkiye manufacturing capacity utilization, business confidence edge higher

Türkiye’s manufacturing capacity utilization rate rose in September, while business confidence edged higher, the country’s central bank said Monday.

The unadjusted capacity utilization rate in the manufacturing sector increased 0.7 percentage points from the previous month to 74.2%, the Central Bank of the Republic of Türkiye (CBRT) said.

The seasonally adjusted rate rose 0.6 percentage points to 74.1%.

Among the main industrial groups, the highest utilization rate in September was 74.5% in intermediate goods, down 0.2 percentage points from the previous month.

At the other end, durable consumer goods recorded the lowest rate at 66.4%, a decline of 1.8 percentage points month-over-month.

By sector, the manufacture of wood products posted the highest capacity usage at 83.7%, while the lowest rate, 59.8%, was recorded in the leather industry.

The data was based on responses from 1,982 manufacturing companies participating in the central bank’s business tendency survey.

Business confidence edges higher

Separate data by the CBRT showed the seasonally adjusted Real Sector Confidence Index rose 0.1 percentage points in September to 102.5.

Assessments of the overall business outlook, current total orders, total orders over the past three months and employment expectations for the next three months contributed positively to the index.

Expectations for export orders over the next three months, assessments of finished-goods inventories, fixed-capital investment spending and expected production over the next three months weighed on the index.

The unadjusted Real Sector Confidence Index fell 0.8 percentage points from the previous month to 102.

Mixed signals in orders and production

Companies’ assessments of production volumes over the past three months shifted further toward those reporting an increase.

The balance of responses on domestic orders shifted from a decline toward an increase, while assessments of export orders moved from an increase toward a decline.

Fewer companies said current total orders were below seasonal norms, while more respondents assessed finished-goods inventories as above seasonal norms.

For the next three months, expectations for higher production and export orders weakened, while expectations for an increase in domestic orders strengthened.

Expectations for higher employment over the next three months also strengthened, while expectations for fixed-capital investment over the next 12 months weakened.

Producer price expectations ease

Expectations for higher average unit costs over the next three months strengthened, as did reports of higher costs over the previous three months.

Expectations for higher selling prices over the next three months also increased.

The manufacturing sector’s expectation for annual producer-price inflation over the next 12 months fell 0.2 percentage points from the previous month to 31%.

Meanwhile, the share of respondents who viewed the overall outlook in their industry as worse than the previous month weakened, indicating a less pessimistic assessment of conditions.

DAILYSABAH