Utilization of production capacity, decline in business confidence in May

ANKARA

According to official data published on May 27, the capacity utilization rate (CUR) in the key manufacturing sector fell in May and business morale deteriorated.

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The unadjusted CUR fell from 76.7 percent in April to 76.3 percent in May, Central Bank data showed.

After the seasonal shutdown, capacity utilization decreased by 0.4 points to 76.6%.

In the durable consumer goods sector, enterprises operated at 74.3% of production capacity in May, which compares unfavorably with CUR’s 75.1% in the previous month.

However, capacity utilization in the consumer durables sector increased from 72.6% to 73.5%.

In the consumer goods industry, enterprise capacity utilization was 73.6%, up from 73% in the previous month.

Food companies used 72.5% in May. of its production capacity, which is a slight decrease compared to the CUR of 72.7%. in April.

In the capital goods production sector, companies used more of their production capacity; in May it was 76.6 percent. compared to 75.9 percent a month earlier. However, the capacity utilization of enterprises producing intermediate goods decreased from 77% to 76.1%.

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Entrepreneurs’ confidence is falling

The Central Bank also reported on May 27 that the business confidence index deteriorated for the first time since December 2023.

The real sector confidence index fell from 106.1 in April to 105.4 in May.

Any number above 100 points indicated optimism among businesses.

The sub-index of current orders decreased by 1% on a monthly basis. to 86.7, while the indicator of current stocks of finished products decreased by 2.1% from April. to 92.9.

The production volume index fell by 1.8% over the next three months. per month, but the total employment rate increased by 0.5% over the next three months. month to month.

The total order index has decreased by 2.5% over the last three months.

The index measuring companies’ assessment of the overall business situation fell by 2.3%.

The Turkish Statistical Institute (TÜİK) reported separately on May 23 that confidence in the retail and construction sectors declined, while in the services sector it remained unchanged.

Morale in the retail sector declined by 3.3%, mainly due to a decline in business volume and sales rates over the past three months.

In the construction sector, the confidence index fell by 0.3% in May, after remaining unchanged in the previous month.