Business confidence improves in January

ANKARA

The real sector confidence index increased from 99.1 in December last year to 100.9 in January, the data from the Central Bank have shown.

Any index figure above 100 indicates optimism among businesses.

The index had been declining since May 2023, when it stood at 108.3, falling under the 100 mark in the final month of last year.

The sub-index of production volume for the next three months advanced 6 percent month-on-month, while the increase in the index of export orders rose by 5 percent.

The sub-index of general business situation, however, fell 3 percent in January from the previous month.

The Turkish Statistical Institute (TÜİK) separately reported that confidence in the services sector improved by 4 percent month-on-month in January.

In the construction sector, the confidence index reversed course, rising 3.3 percent after falling 3.3 percent in December.

In the retail industry, business morale sank 1 percent in January, comparing unfavorably with the 4.5 percent increase recorded in the previous month.

Separate data from the Central Bank showed that the seasonally adjusted capacity utilization rate (CUR) in manufacturing declined from 77.3 percent in December last year to 76.4 percent in January.

In the consumer goods sector, capacity usage was 73.1 percent, down from 74 percent, while the CUR in durable consumer goods fell slightly from 72.3 percent to 72 percent.

In the investment goods sector, the capacity utilization declined from 77.4 percent to 75.7 percent.