Annual PPI expectation decreased by 2.4 points compared to the previous month

The Economic Tendency Statistics and Real Sector Confidence Index for December were announced by the Central Bank of the Republic of Turkey.

The results of the Economic Tendency Survey were evaluated by weighting and aggregating the responses of 1,735 workplaces operating in the manufacturing industry.

Accordingly, the Real Sector Confidence Index fell by 1.1 points in December compared to the previous month, dropping to the 99.1 level. In the same period, the seasonally adjusted real sector confidence index decreased by 0.5 points to 103.4.

When examining the diffusion indices of the survey questions that make up the index, assessments regarding the general trend, fixed capital investment expenditure, current total order quantity, current finished goods stock, and export order quantity for the next three months influenced the index in an upward direction, while assessments regarding the total order quantity for the last 3 months, and total employment and production volume for the next 3 months influenced the index in a downward direction.

In the assessments for the last 3 months, the trend in favor of those reporting a decrease in domestic market order quantity strengthened. The trend in favor of those reporting an increase in production volume and export order quantity shifted in favor of those reporting a decrease.

Assessments that current total orders were below seasonal norms and assessments that the level of current finished goods stocks was above seasonal norms weakened compared to the previous month.

In the assessments for the next 3 months, the trend in favor of those expecting an increase in production volume and domestic market order quantity weakened, while the trend in favor of those expecting an increase in export order quantity strengthened.

While expectations for an increase in fixed capital investment expenditure for the next 12 months strengthened compared to the previous month, expectations for an increase in employment for the next 3 months weakened.

PPI EXPECTATION FELL TO 58.8 PERCENT

The trend in favor of those expecting an increase in average unit costs in the next 3 months and those reporting an increase in the last 3 months weakened. Expectations for an increase in sales prices for the next 3 months strengthened.

As of the end of the next 12-month period, the annual PPI expectation decreased by 2.4 points compared to the previous month, reaching 58.8 percent.

While the proportion of those stating they are more optimistic about the general trend in their industry compared to the previous month rose to 8.9 percent, and the proportion of those stating they are more pessimistic rose to 15.4 percent, the proportion of those stating it remained the same fell to 75.7 percent.