Capacity usage unchanged, business morale falls in March

ANKARA

The seasonally adjusted Capacity Utilization Rate (CUR) in the manufacturing industry remained steady at 74.0 percent compared with the previous month, data from the Central Bank showed on March 24.

In contrast, the unadjusted CUR declined slightly by 0.2 points, settling at 73.3 percent.

Within the durable consumer goods sector, companies operated at 68.7 percent of their capacity, marking an increase from 66.7 percent in February. The non-durable consumer goods sector also experienced a modest improvement, with capacity usage rising from 72.1 percent to 74 percent. Overall, consumer goods capacity utilization, which had stood at 71.2 percent in February, edged up to 71.7 percent in March.

Meanwhile, intermediate goods producers reported a marginal decrease in capacity usage, falling from 74.9 percent to 74.7 percent. The capital goods sector also saw a decline, with the rate dropping from 70.1 percent in February to 69.5 percent in March.

In addition to the CUR data, the Central Bank also released the seasonally adjusted Real Sector Confidence Index (RSCI), which fell by 4.1 points to reach 100 in March.

The decline was attributed to negative assessments across all sub-indices. Survey responses indicated weaker expectations for production volume over the next three months, a less favorable view of the general business outlook, reduced order volumes both in the past three months and currently, lower investment spending intentions, diminished export order expectations, higher inventories of finished goods and weaker employment projections.

Each of these factors contributed to the overall deterioration in business confidence.