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Business confidence across Türkiye’s key sectors improved in November, with the services, retail trade, and construction industries all reporting month-on-month increases in sentiment indicators, while the capacity utilization rate also rose in the manufacturing sector, according to official figures.
The Turkish Statistical Institute (TurkStat) reported that seasonally adjusted confidence indices for November showed a 1.0% rise in the services sector to 111.8, a 0.9% increase in retail trade to 114.2, and a 1.5% increase in construction to 84.9.
In the services sector, assessments of business conditions and demand both strengthened. The reported business situation over the past three months rose by 2.3%, while demand for services in the same period increased by 1.5%.
However, expectations for service demand over the next three months declined by 0.8%. The retail sector saw a 2.3% increase in business volume and sales over the previous three months, alongside a 1.0% improvement in sales expectations for the upcoming quarter.
Conversely, inventory levels of goods in stock fell by 1.2%, suggesting increased consumption or demand outpacing supply.
In the construction industry, the current level of registered orders edged up 0.1%, while expectations for total employment over the next three months jumped 2.7%, indicating a more optimistic outlook in the labor market within the sector.
Türkiye’s Real Sector Confidence Index, a monthly measure of sentiment among industrial firms based on business expectations and order levels, rose by 1.2 points from the previous month to 103.2 in November, the Central Bank of the Republic of Türkiye (CBRT) reported.
Key factors contributing to the monthly increase included more positive views on total orders over the last three months, expected export orders, and anticipated production and employment levels over the next three months.
However, businesses reported a slight deterioration in current inventories, investment expenditure expectations, and general business sentiment.
The central bank reported a slight uptick in manufacturing capacity utilization in November, which means that a larger share of Türkiye’s total industrial production capacity was actively in use during the month, with the unadjusted rate rising by 0.2 percentage points to 74.4%, based on survey responses from 1,791 firms in the Economic Tendency Survey.
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