Capacity usage declines, business sentiment deteriorates in August
ANKARA
Data from the Central Bank have shown that the capacity utilization rate (CUR) in the key manufacturing sector declined, while the real sector confidence index dropped to its lowest level since December 2022.
Manufacturing companies worked at 75.4 percent capacity in August, down from 75.9 percent in the previous month, the bank said on Aug. 26.
In the durable consumer goods manufacturing industry, the CUR, which stood at 72.9 percent in July, declined to 72.6 percent, but the capacity usage in the non-durable consumer goods sector inched up from 72.7 percent to 73.7 percent in August.
Companies operating in the consumer goods sector reported that their capacity usage rose slightly from 72.7 percent to 73.5 percent.
The CUR in the intermediate goods industry was unchanged from July at 75.6 percent.
In the capital goods manufacturing sector, capacity utilization plunged from 76 percent to 75.6 percent.
The bank’s business tendency survey showed on Aug. 26 that the real sector confidence index declined from 100.3 points in July to 98.5 points in August.
Any figure above the 100 mark indicates optimism among businesses.
The August print was the lowest level of the gauge of business sentiment since December 2022.
The sub-index of current total orders fell 3 percent month-on-month to 78.8 points, while the monthly decline in the sub-index of production volume in the next three months was also 3 percent to 114.5 points.
The sub-index of companies’ assessment of the general business situation was almost unchanged at 86.3 points.
The export orders index in the next three months fell from 115 points in July to 107.1 points in August but fix capital investment index retreated from 110 points to 109.6 points.
Meanwhile, the Turkish Statistical Institute (TÜİK) on Aug. 26 unveiled confidence data in the services, retail trade and construction sectors.
Accordingly, the monthly drop in the services sector confidence index accelerated from 1.1 percent last month to 2 percent in August, driven mainly by the deterioration in services companies’ expectations regarding demand for their products.
The business situation appeared to have improved for the retail and construction sectors, according to the survey.
The retail trade confidence index posted a 0.8 percent month-on-month increase after declining 1.5 percent in July as companies’ expectations regarding sales volume improved in August compared with the previous month.
Confidence in the construction sector, which fell 0.9 percent in July, rose 1.1 percent. The sub-indices of current orders and total employment expectations over the next three months increased by 1.2 percent and 1 percent, respectively.
