Data contradiction in the economy: Automotive market shrinks by 25 percent, crisis not reflected in indicators

The contraction in the automotive sector, one of the locomotives of the economy, is accelerating. According to the latest data released, the automotive market hit the brakes hard in July, recording a significant shrinkage. However, the fact that this contraction in the real sector has not yet been reflected in key macroeconomic data such as employment and the consumer confidence index has become a topic of discussion among economists.

HARD BRAKES IN AUTOMOTIVE: WHAT DO THE NUMBERS SAY?

July data shows that the bleeding in the sector has become pronounced in both the automobile and commercial vehicle segments. The highlights of the released data are as follows:

Total Market: In July, the automobile and light commercial vehicle market decreased by 25% compared to the same period last year, remaining at the level of 80,786 units.

Automobile Sales: While the decline in passenger vehicles was recorded at 25.79%, total sales amounted to 62,478 units.

Light Commercial Vehicle: Sales in this segment decreased by 22.17% to 18,308 units.

Seven-Month Picture: Looking at the January-July period covering the first seven months of the year, the total market contracted by 10.72%, falling to the level of 638,965 units.

The July sales figures remained 2.8% below the 5-year average, while they were 13% above the 10-year average.

ECONOMIST İbrahim Kahveci EMPHASIZES "CONTRADICTION"

Evaluating the picture following the release of the automotive data, economist İbrahim Kahveci drew attention to the discrepancy between the realities of the market and the announced economic indicators.

Emphasizing that the contraction in the real sector and payment crises in the market are not reflected in employment and consumer confidence, Kahveci summarized the situation with these words:

"Major sectors such as automotive, housing, and white goods are contracting very sharply. But this contraction has not been reflected in employment. Foreclosures and enforcement proceedings are exploding. But this insolvency has not been reflected in consumer confidence. A similar contradiction is being experienced in many other areas."

In the coming period, it is being closely monitored whether this sharp slowdown in leading sectors such as automotive and construction will have a delayed effect on unemployment figures and consumer trends.

News Source: 12punto