Real Sector Confidence Index Increased in November

In November 2024, the seasonally adjusted Real Sector Confidence Index (RKGE-MA) rose by 1.2 points compared to the previous month, reaching 103.4. According to the announcement from the Central Bank of Turkey, an analysis of the diffusion indices associated with the survey questions that constitute the index revealed that evaluations regarding total orders in the last three months, current total orders, general outlook, current finished goods stock, export order quantity for the next three months, and total employment for the next three months contributed positively to the increase in the index, while evaluations concerning fixed capital investment expenditure negatively affected the index. Assessments related to production volume for the next three months remained at the same level as the previous month.

The statement noted: "The unadjusted Real Sector Confidence Index (RKGE) decreased by 0.5 points compared to the previous month, reaching a level of 100.4.

In the evaluations concerning the last three months, the trend favoring those reporting an increase in production volume and those reporting a decrease in domestic market order quantity has strengthened compared to the previous month, while the trend favoring those reporting a decrease in export order quantity has weakened.

It has been observed that assessments indicating that current total orders are below seasonal norms and that the level of current finished goods inventories is above seasonal norms have weakened compared to the previous month.

In assessments for the next three months, the trend favoring those expecting increases in production volume, export order quantity, and domestic market order quantity has weakened compared to the previous month. Expectations for an increase in fixed capital investment expenditure over the next twelve months have weakened compared to the previous month, while expectations for an increase in employment over the next three months have strengthened somewhat.

The trend favoring those expecting an increase in average unit costs over the next three months has strengthened, while the trend favoring those reporting an increase in the last three months has weakened. Expectations for an increase in sales prices for the next three months have also strengthened. As for the annual Producer Price Index (PPI) expectation for the end of the next twelve-month period, it decreased by 2.0 points compared to the previous month, reaching 45.4 percent."