Capacity utilization rate, confidence down in May

ISTANBUL - Anatolia News Agency

The photo shows a worker at a plant of local socket and switch producer Viko.

The capacity utilization rate in Turkey’s manufacturing industry dropped 0.5 points to 74.7 percent in May 2012 when compared to May 2011.

The Central Bank stated yesterday that the capacity utilization rate had been at 75.2 percent in May 2011. The rate had not changed when compared to April 2012.

The capacity utilization rates, calculated for the overall manufacturing industry and its sub-sectors, represent the weighted averages of the rate of production capacity actually utilized in each the respondent local units as per their physical capacities.

Meanwhile, the real sector confidence index decreased 2.2 points to 113.8 in May compared to the previous month. The Central Bank said yesterday that the seasonally adjusted index also fell 1.9 points to 107.9 in May when compared to April. Readings higher than 100 indicate an optimistic outlook, while readings lower than 100 reveal a pessimistic outlook about economic activity on the part of real sector agents the Business Tendency Survey covers.