Real sector confidence decreased in November

The Central Bank of the Republic of Turkey (CBRT) announced the economic trends statistics and real sector confidence index for November.

The results of the Economic Trends Survey were evaluated by weighting and aggregating responses from 1,760 workplaces operating in the manufacturing industry.

Consequently, the RKGE decreased by 3.1 points in November compared to the previous month, to 100.2. In the same period, the seasonally adjusted real sector confidence index (RKGE-MA) decreased 1.4 points compared to the previous month and stood at 103.9.

When examining the diffusion indices of the survey questions that make up the index, assessments of total employment in the next 3 months and volume of production in the next 3 months affect the index in an upward direction, while the amount total orders in the last 3 months, total amount of current orders, investment expenses in fixed capital, amount of export orders in the next 3 months. Assessments on the general trend and the existing stock of finished products influenced the index in a downward direction.

In the evaluations of the last 3 months, the trend in favor of those who reported an increase in the number of orders in the domestic market turned in favor of those who reported a decrease. While the trend in favor of those who reported an increase in production volumes strengthened compared to the previous month, the trend in favor of those who reported an increase in export order amounts weakened.

Assessments that current total orders are below seasonal norms and assessments that the current level of finished goods stocks are above seasonal norms have strengthened compared to the previous month.

In the assessments for the next 3 months, the trend in favor of those who expect an increase in production volume and the amount of export orders has weakened compared to the previous month, while the trend in favor of those who expect an increase in the amount of orders from the domestic market has strengthened.

While upward expectations regarding fixed capital investment spending in the next 12 months have weakened compared to the previous month, upward expectations regarding employment in the next 3 months have strengthened.

IPP EXPECTATION DECREASED TO 61.2 PERCENT

While the trend in favor of those who reported an increase in average unit costs in the last 3 months has strengthened slightly, the trend in favor of those who expect an increase in the next 3 months has weakened slightly.

Greater expectations about the sales price in the next 3 months have also weakened. At the end of the next 12-month period, the annual PPI expectation decreased by 1.3 points compared to the previous month and reached 61.2 percent.

The rate of those who declared that they were more optimistic about the general trend of their industry compared to the previous month decreased to 6.8 percent, the rate of those who declared that they were more pessimistic decreased to 15.1 percent, while the rate of those who said they were more pessimistic decreased to 15.1 percent who said it remained the same increased to 78.1 percent. (AA)