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Türkiye's manufacturing sector showed signs of softening in July as capacity utilization fell to 74.1%, according to a Turkish central bank survey released Friday.
The decline represents a 0.3 percentage point drop from June's 74.4% utilization rate, indicating manufacturers are operating their facilities at a slightly reduced pace compared to the previous month.
Intermediate goods production recorded the highest utilization rate at 74.7% in July, though this marked a decrease from 75.1% in June. Investment goods manufacturing registered the lowest capacity usage at 71.1%, down from 71.9% the month prior.
Sector-specific data revealed significant variation across Türkiye's manufacturing landscape. Tobacco products manufacturing led all sectors with an 85.2% capacity utilization rate, while leather products manufacturing recorded the lowest usage at 66%.
The central bank's monthly business tendency survey collected responses from 1,844 manufacturing companies across Türkiye to compile the July figures. The bank emphasized that the survey data reflect industry responses rather than official bank forecasts or policy positions.
Capacity utilization rates serve as a key economic indicator, measuring how fully manufacturers are using their production capabilities. The metric helps economists and policymakers gauge industrial momentum and potential inflationary pressures in the economy.
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