FX.co ★ Turkish Manufacturing Capacity Utilization Falls To 29-Month Low, Business Confidence Improves

Turkey's manufacturing capacity utilization rate declined marginally in February to the lowest level in nearly two-and-a-half years, while the factory confidence strengthened amid hopes of an increase in domestic orders and production in the near future, figures from the central bank showed on Wednesday.

The capacity utilization rate edged down to 75.2 percent in February from 75.3 percent in January.

Further, this was the lowest ratio since September 2020, when it was 74.6 percent.

On a seasonally adjusted basis, the capacity utilization rate declined to 75.7 percent in February from 75.8 percent in the previous month.

Separate data from the central bank showed that the non-adjusted manufacturing confidence index rose to a seven-month high of 102.4 in February from 101.7 in January.

Domestic orders and production are expected to increase over the next three months. An increase in employment is anticipated, and a slowdown is expected in producer price inflation in the near future.