The Central Bank of the Republic of Turkey (CBRT) announced the Economic Tendency Statistics and Real Sector Confidence Index for April. The results of the Business Tendency Survey were evaluated by weighting and aggregating the responses of 1,718 workplaces operating in the manufacturing industry.
Accordingly, RKGE increased by 2.8 points in April compared to the previous month and became 108. In the same period, the seasonally adjusted real sector confidence index (RKGE-MA) increased by 1 point to 105.1.
When the diffusion indices of the survey questions that make up the index are examined, it is seen that the index of evaluations regarding fixed capital investment expenditure, export order amount in the next 3 months, total employment in the next 3 months and production volume in the next 3 months is in the direction of increase. On the other hand, the evaluations regarding the stock of goods and the total amount of orders affected the index in a downward direction.
In the evaluations for the last 3 months, the trend in favor of those who reported a decrease in their production volume and domestic market order amount turned in favor of those who reported an increase, while the trend in favor of those who reported a decrease in their export order amount weakened compared to the previous month.
The evaluations that the current total orders are below the seasonal normals and the evaluations that the current finished goods stocks are above the seasonal normals have strengthened compared to the previous month.
In the evaluations for the next 3 months, the trend in favor of those who expected an increase in the production volume, export order amount and domestic market order amount in the previous month, and the expectations for employment in the next 3 months and fixed capital investment expenditures in the next 12 months have strengthened.
PPI expectation fell to 67.6 percent
While the trend in favor of those who expect an increase in average unit costs in the next three months strengthened, the trend in favor of those who reported an increase in the last three months weakened.
While the expectations for an increase in the sales price in the next three months became stronger, the annual PPI expectation by the end of the next twelve months decreased by 2.8 points compared to the previous month and became 67.6 percent.
While 48.4 percent of the workplaces surveyed in April stated that there were no factors limiting their production, 14.2 percent stated that the lack of demand was the most important factor limiting their production, it was followed by raw material equipment inadequacy, financial impossibilities, labor shortage and other factors, respectively.
When the developments regarding competitiveness in the last three months are evaluated, the trend in favor of those who reported a decrease in competitiveness in the domestic markets in the previous period and the trend in favor of those who reported a decrease in their competitiveness in the European Union and abroad markets weakened.
Compared to the previous month, the rate of those who stated that they were more optimistic about the general course of the industry in which they belong decreased to 7.7 percent, the rate of those who stated that they were more pessimistic to 14.5 percent, while the rate of those who stated that they remained the same increased to 77.8 percent.