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The real sector confidence index in Türkiye rose by 0.6 points to a five-month high in October at 100.8, while the manufacturing industry’s capacity utilization rate increased to 74%, signaling an improvement in sentiment and activity among producers, the Turkish central bank reported on Monday.
Based on responses from 1,828 manufacturing firms in the CBRT’s Economic Tendency Survey, the results showed that expectations regarding production volume, employment, investment expenditures, export orders and the general business outlook improved, while assessments related to past orders exerted a downward effect on the index.
In October, 54% of surveyed manufacturers reported no factors limiting their production, while 13.7% cited insufficient demand as the main constraint.
Other limiting factors included financial difficulties, labor shortages and shortages of raw materials or equipment.
The findings reflect a cautiously optimistic sentiment across the manufacturing sector, with firms expecting stable or improving conditions over the next three months.
In capacity utilization, intermediate goods producers recorded the highest rate at 75%, up 0.1 points, while durable consumer goods manufacturers posted the lowest at 69.3%, down one point.
Among sub-industries, tobacco manufacturing showed the highest utilization at 85.7%, whereas machinery and equipment manufacturing remained the lowest at 63.9%.
While overall manufacturing sentiment strengthened, Türkiye’s statistical authority, TurkStat, reported mixed confidence trends across other key sectors.
The seasonally adjusted confidence index declined by 0.3% in services to 110.7 and dropped by 5.3% in construction to 83.7.
In contrast, retail trade confidence rose by 3.7% to 113.2, reflecting strong consumer demand heading into the final quarter of the year.
In the services sector, both activity and demand weakened slightly from the previous month. The business situation over the past three months fell by 0.1%, demand for services decreased by 0.4%, and expectations for demand in the next three months also edged down by 0.4%.
Retail trade, however, showed stronger momentum. Business volume and sales over the past three months increased by 5.9%, while expectations for sales in the next three months rose by 2.9%, and current inventory levels grew by 1.8%.
In contrast, construction confidence softened.
The level of registered orders fell by 5.7%, and expectations for total employment over the next three months declined by 4.9%.
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