The capacity utilisation rate (CUR) of the Turkish manufacturing sector rose to 78.8% in May, the highest figure recorded since August 2013, the central bank reported on May 23.
Turkey has been experiencing ongoing domestic political troubles as well as regional security issues since the summer months of 2013 when the Gezi mass protests were held against the government led by the then PM, now president, Recep Tayyip Erdogan.
Erdogan won his long-desired executive presidency with sweeping powers in April this year. But the economic cost of the turbulence leading up to the referendum that secured the shift to a more powerful presidency was significant, especially in the third quarter of 2016 following the failed coup July 15 coup attempt.
The CUR figure for May is something of a flashback to the Turkish economy highs seen in 2013. However, the recent recovery has been mainly based on export growth and the latest business sentiment survey by the central bank points to a significant decline in export orders for the coming three-month period.
The CUR stood at 78.4% in April this year and at 77.7% in May last year.
In the durable goods manufacturing sector, the capacity utilisation rate rose to 77.8% in May from 76.3% in April while the usage in the consumer goods industry edged up to 72.4% from 72.2%.
The intermediate goods industry saw its capacity usage rate increase to 79.6% in May from the previous month’s 79% while the capacity utilisation in the capital goods sector was 84.2% versus 84.3% in April.
Turkey’s calendar-adjusted industrial production index moved up by 2.8% y/y in March, marking the best growth in output recorded since May 2016. The seasonally-adjusted industrial production index has posted annual growth for six consecutive months running from October 2016 to March this year.
Turkey's Manufacturing Purchasing Managers' Index (PMI) slightly declined to 51.7 in April from 52.3 in March, the highest level recorded since February 2014. In March, the PMI score registered one of the largest monthly increases in the 12-year history of the survey. The April figure can be presented as the second-highest level since December 2015 despite the slight monthly decline.