Production usage rate experiences a slight decrease in July
In the heart of Turkey, the industrial hub of Ankara has been experiencing a moderate level of activity as indicated by the Capacity Utilization Rate (CUR) in the manufacturing sector. As of April 2025, the CUR stands at 74.3%, signalling underutilized capacity due to economic slowdowns and demand weaknesses [3].
This figure represents how much of a factory's full potential is being used at a given time. A CUR of 74.3% indicates that the manufacturing sector in Ankara is somewhat below maximum capacity.
The overall manufacturing sector in Turkey has experienced a slowdown, with the CUR falling to its lowest in two years. This downturn has been linked to weaker domestic demand and broader political and economic uncertainty affecting the industrial environment [3].
Despite a rise in national electricity and energy demand due to extreme heat and industrial needs, with power generation hitting historic peaks in the country, these conditions have not yet translated into a higher manufacturing CUR [1]. Thus, despite the energy infrastructure strain, manufacturing utilization in Ankara remains moderately subdued.
Additional data released by the Central Bank on July 25, 2025, shows that the CUR in the manufacturing sector decreased by 0.3 points in July 2025, settling at 74.1% [4]. The lowest utilization rate in July was 71.1% in investment goods, down from 71.9% in the previous month [4]. On the other hand, the highest utilization rate in July was 74.7% in intermediate goods, down from 75.1% in June [4].
The decline in the services sector was driven by lower expectations for future demand and a slight drop in business activity over the past three months [5]. The unadjusted Real Sector Confidence Index (RSCI) declined slightly by 0.1 points, settling at 100.2 [5]. The RSCI reached just a touch below the neutral threshold of 100 in July 2025 [5].
In contrast, the Turkish Statistical Institute's (TÜİK) seasonally adjusted confidence indices for July showed a notable improvement in the construction sector. Confidence in the construction sector rose by 2.2% to 88.8, supported by a significant increase in employment expectations for the next three months [5].
The seasonally adjusted RSCI increased by 0.5 points in July 2025, reaching 98.9 [5]. It's important to note that the RSCI is separate from the Capacity Utilization Rate.
In the services sector, weaker assessments of current total orders and current inventories of finished goods exerted downward pressure on overall confidence [5]. Confidence in the retail trade industry decreased by 0.5% to 107.9, reflecting weaker sales volume and expectations, despite a modest rise in current stock levels [5].
As we move forward, it will be interesting to see how these trends evolve and how the manufacturing sector in Ankara adapts to the changing economic landscape.
- The decline in the services sector and the unchanged manufacturing Capacity Utilization Rate (CUR) in Ankara indicate that the overall business environment in Turkey is limping, impacted by weaker domestic demand, economic slowdowns, and political uncertainty.
- Amid an increase in national electricity and energy demand, developments in the financing sector, such as loans for expanding manufacturing capacity, could potentially help in revitalizing the economy by increasing the CUR and boosting business growth in the manufacturing sector of Ankara, Turkey.
