Business morale and capacity utilization both increase in April

Business morale in Ankara is on the rise as the capacity utilization rate in the key manufacturing sector increased in April, according to data from the Central Bank. The real sector confidence index saw a 1.6 percent month-on-month increase to reach 106.1, the highest level since July of last year. This indicates optimism among businesses, with the sub-index of the general business situation also showing improvement.

The indices for output volume and export orders in the next month surged, while the index of total employment in the next three months also inched up. Confidence in the retail sector rose by 1.9 percent, while the services sector saw a 2.8 percent decline in confidence. The construction sector, however, remained unchanged after a previous decline.

In terms of capacity utilization, the key manufacturing sector saw an increase from 76.2 percent in March to 76.7 percent in April. Companies in the durable consumer goods sector utilized 75.1 percent of their capacity, while the non-durable consumer goods sector saw a slight decline. The capital goods sector also saw a decrease in capacity usage.

The Central Bank’s Investment Tendency Survey revealed that more companies in the manufacturing sector are planning to increase their investments this year compared to last year. This positive outlook reflects a growing confidence in the business environment in Ankara.