Türkiye’s real sector confidence index rose to its highest level since March, supported by stronger expectations for production, exports and employment in the coming months, data from the central bank showed on Monday.

The seasonally adjusted Real Sector Confidence Index increased by 1.2 points month-over-month to 103.2 in November, up from 102 in October. The unadjusted index was unchanged at 100.8, the Central Bank of the Republic of Türkiye (CBRT) said.

Survey responses indicated that assessments regarding total orders over the past three months, export orders for the next three months, current orders, expected production volume and expected employment all supported the rise, while views on inventories, general business conditions and fixed investment spending weighed on sentiment.

Producer price expectations ease

Firms’ expectations for annual producer inflation at the end of the next 12 months fell by 0.8 points from October to 33.5%, according to the CBRT.

Producer prices in Türkiye rose 1.63% month-over-month in October for an annual increase of 27%, according to official data.

Expectations for average unit costs over the next three months strengthened, the CBRT report said, while reports of realized cost increases over the past three months weakened. Expectations for sales price increases over the next three months also intensified.

Companies’ sentiment regarding the overall course of their industrial sector turned more pessimistic compared with the previous month.

Capacity utilization edges higher

Separate data by the CBRT showed the seasonally adjusted capacity utilization rate in manufacturing inched up 0.1 point to 74.1% in November.

The unadjusted rate rose 0.2 points to 74.4%.

Sectoral confidence improves

Meanwhile, separate data from the Turkish Statistical Institute (TurkStat) showed that sectoral confidence indices rose across all major sectors in November.

The seasonally adjusted confidence index increased 1% in the services sector to 111.8, 0.9% in retail trade to 114.2, and 1.5% in the construction sector to 84.9.

In services, assessments of business conditions over the past three months rose 2.3%, while demand over the past three months increased 1.5%. However, expectations for demand over the next three months declined 0.8%.

In retail trade, sales volume over the past three months rose 2.3%, and expectations for sales over the next three months increased 1%, while current inventories fell 1.2%.

In construction, firms reported a 0.1% increase in the level of current registered orders, and expectations for total employment over the next three months surged 2.7%.


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