Real Sector Confidence Index Declines
In December, the seasonally adjusted Real Sector Confidence Index (RKGE-MA) decreased by 0.7 points compared to the previous month, reaching a level of 102.7. According to the announcement from the Central Bank of the Republic of Turkey (TCMB), when examining the diffusion indices related to the survey questions that constitute the index, while evaluations regarding total employment for the next three months, the amount of export orders for the next three months, the production volume for the next three months, and general outlook positively affected the increase in the index, evaluations regarding fixed capital investment expenditures, current total order amounts, total order amounts in the last three months, and current finished goods inventory negatively impacted the index.
The non-seasonally adjusted Real Sector Confidence Index (RKGE) decreased by 1.3 points to 99.1 compared to the previous month. The statement noted: "In evaluations regarding the last three months, it has been observed that the trend favoring those reporting an increase in production volume has shifted towards those reporting a decrease, and the trend favoring those reporting a decrease in internal market order amounts and export order amounts has strengthened compared to the previous month.
In evaluations regarding the next three months, the trend favoring those expecting an increase in production volume weakened compared to the previous month, while the trend favoring those expecting an increase in export order amounts and internal market order amounts has strengthened compared to the previous month. Expectations for an increase in fixed capital investment expenditures over the next twelve months have weakened compared to the previous month, while expectations for an increase in employment for the next three months have strengthened.
It has been noted that in average unit costs, the trend favoring those expecting an increase in the next three months and those reporting an increase in the last three months has weakened. Expectations for an increase in sales prices over the next three months have strengthened. As of the end of the twelve-month period, the annual Producer Price Index (PPI) expectation was 45.0%, decreasing by 0.4 points compared to the previous month. Regarding the general outlook in their industry, the trend favoring those stating they are more pessimistic compared to the previous month has weakened.