Turkey’s capacity utilization rate contracts
A slowdown in exports and a drop in the pace of private capital spending dragged down
Turkey's capacity utilization rate (CUR) in July.
Turkey's State Institute of Statistics (DIE) disclosed that the country's CUR fell from 83.9 percent in July 2004 to 80.6 percent in July 2005. A strong showing in public sector CUR was not enough to overcome underutilization in the private sector.
Public sector CUR rose from 89.5 percent in June to 92.1 percent in July. Oil refineries working at 97 percent capacity and paper and paper products output at 86 percent capacity drove public sector CUR.
On the other hand, private sector capacity utilization rate fell from 79.4 percent to 77.5 percent during the same period. A slowdown in exports and drop in private capital spending is to blame for the private sector's lackluster CUR.
Market watchers are optimistic that
Turkey's CUR might rebound in the coming months as exports are expected to pick up come September.