Real Sector Confidence Index (RKGE) decreased by 2.7 points to 103.7 in July compared to the previous month.
Economic Tendency Statistics and Real Sector Confidence Index for July were announced by the Central Bank of the Republic of Turkiye (CBRT). The results of the Business Tendency Survey were evaluated by weighting and aggregating the responses of 1,733 workplaces operating in the manufacturing industry.
Accordingly, RKGE decreased by 2.7 points to 103.7 in July compared to the previous month. In the same period, the seasonally adjusted real sector confidence index (RKGE-MA) decreased by 2.1 points to 102.5.
When the diffusion indices of the survey questions that make up the index are examined, the evaluation index regarding the current finished goods stock was in the direction of increase, the current total order amount, the total employment in the next three months, the export order amount in the next three months; on the other hand, evaluations regarding fixed capital investment expenditure, production volume in the next three months, general trend and total order quantity in the last three months affected the index in a downward direction.
In the evaluations for the last three months, the trend in favor of those who reported an increase in their production volume and domestic market order amount weakened compared to the previous month, while the trend in favor of those who reported an increase in the amount of export orders strengthened compared to the previous month.
While the evaluations that the current total orders are below the seasonal normals strengthened compared to the previous month, the evaluations that the current finished goods inventories are above the seasonal normals weakened compared to the previous month.
In the evaluations for the next three months, the trend in favor of those who expected an increase in the production volume, export order quantity and domestic market order quantity weakened. Increasing expectations for employment in the next three months and fixed capital investment expenditures in the next twelve months also weakened.
PPI expectation rose to 85.5%
The trend in favor of those who reported an increase in average unit costs in the last three months and those who expected an increase in the next three months weakened. Expectations for an increase in the selling price in the next three months also decreased.
As of the end of the next twelve months, the annual PPI expectation increased by 4.6 points compared to the previous month and became 85.5%.
In July, 51.1% of the surveyed workplaces stated that there was no factor limiting their production, while 13.1% noted that the lack of demand was the most important factor limiting their production, followed by raw material and equipment inadequacy, financial difficulties, labor shortage and other factors, respectively.
When the developments regarding competitiveness in the last three months are evaluated, the trend in favor of those who reported a decrease in competitiveness in domestic markets in the previous period has strengthened. The trend of increasing competitiveness in markets within the European Union turned in favor of those who reported a decrease, while the trend in favor of those who reported a decrease in competitiveness in foreign markets outside the European Union became stronger.
Compared to the previous month, the rate of those who stated that they were more optimistic about the general course of the industry in which they belong increased to 5.9%, the rate of those who stated that they were more pessimistic to 27.7%, while the rate of those who stated that they remained the same decreased to 66.4%.
Source: Trthaber / Translated by Irem Yildiz