Real sector confidence rises in May

ANKARA

Türkiye’s real sector confidence improved in May, while capacity utilization in the manufacturing industry edged higher, Central Bank data has shown.

The seasonally adjusted Real Sector Confidence Index rose 2.4 points from the previous month to 101.0 in May. The unadjusted index increased 2.7 points to 103.3.

Assessments on the general business outlook, export orders for the next three months, employment expectations, current total orders, production volume and fixed capital investment supported the increase in the index.

By contrast, assessments on current stocks of finished goods had a negative effect on the index.

The seasonally adjusted capacity utilization rate in manufacturing rose 0.1 points from the previous month to 74.1 percent. The unadjusted capacity utilization rate increased 0.4 points to 74.2 percent.

In a separate data set, the Central Bank said Türkiye’s gross external debt stock fell 0.4 percent from the previous quarter to $518.5 billion in the first quarter of 2026.

Short-term external debt declined 0.5 percent to $166.6 billion, while long-term external debt decreased 0.3 percent to $351.9 billion.

By sector, public external debt fell 3.3 percent to $192.2 billion. Private sector external debt rose 1.8 percent to $302.1 billion, while the Central Bank’s external liabilities declined 2.9 percent to $24.3 billion.

Dollar-denominated debt accounted for 48.7 percent of total external debt, followed by euro-denominated debt with 29.5 percent, Turkish Lira-denominated debt with 11.7 percent and other currencies with 10.2 percent.

According to payment projections for loans and debt securities, principal repayments are concentrated in maturities of 24 months and longer, while repayments in the 13-24 month range remain more limited. Short-term repayments are mainly driven by private sector loans.