Decrease in Real Sector Confidence Index to 102.8
The Central Bank of the Republic of Turkey has released the Economic Tendency Statistics and Real Sector Confidence Index for the month of June. The results of the Economic Tendency Survey, which included responses from 1738 workplaces in the manufacturing industry, showed a decrease in the Real Sector Confidence Index by 2.6 points compared to the previous month, falling to 102.8 in June. Additionally, the seasonally adjusted real sector confidence index decreased by 1.9 points to 100.5 during the same period.
An analysis of the survey questions making up the index revealed that evaluations regarding existing finished goods stock, current total order amount, fixed capital investment expenditure, total employment in the next 3 months, general trend, total order amount in the last 3 months, production volume in the next 3 months, and export order amount in the next 3 months all impacted the index in a downward direction.
Despite this, there was a positive trend in the reports of an increase in production volume and export order amount over the last 3 months compared to the previous month. However, reports of a decrease in domestic market order amount were not as strong as the month before.
Looking ahead, there was optimism for an increase in production volume, export order amount, and domestic market order amount in the next 3 months. On the other hand, expectations for fixed capital investment expenditure over the next 12 months and employment in the next 3 months were not as strong.
The Producer Price Index (PPI) expectation for the next 12 months decreased by 1.0 point compared to the previous month, reaching 53.6 percent. There was also a weakening in the expectations for an increase in average unit costs and sales price in the next 3 months.
Overall, the sentiment regarding the general trend in the industry compared to the previous month was more pessimistic, indicating a challenging economic environment in the coming months.
