MUSIAD: SAMEKS Composite Index decreased by 9.3 points to 45.6 in July
In July 2024, seasonally and calendar adjusted SAMEKS Composite Index decreased by 9.3 points compared to the previous month to 45.6 and dived below the 50,0 reference value.
In July Services Sector SAMEKS Index decreased by 10.9 points compared to the previous month to 46.3. Industrial Sector SAMEKS Index also decelerated to 49.5 by 4.3 points compared to the previous month.
In the services sector, business volume contracted due to the rapid deceleration in input purchases. In the industrial sector, new orders decreased compared to the previous month and fell below the reference value, leading to a decline in production and input purchases in the sector.
As a result of these developments, the SAMEKS Composite Index, which was realized as 45.6, entered a downward trend again after the expansion recorded in the previous month and pointed to the stagnation in economic activity in July.
ISO PMI in the contraction territory again
The headline PMI declined for the fifth consecutive month to 47.2 in July from 47.9 in June, pointing to a marked slowdown in the sector’s operating conditions.
New orders fell at the same rate as in November 2023, the sharpest decline in 20 months. Along with the slowdown in new orders, employment levels also declined. The decline in the number of employees was measured at the highest rate in the last 21 months. Personnel shortages also negatively affected production volumes as reported.
According to the Istanbul Chamber of Industry Turkey Sectoral PMI report; new orders slowed down in all ten sectors monitored. Production contracted in all sectors except clothing and leather products. As a result of these developments, employment and purchasing activities also recorded a widespread decline. Manufacturers reduced their purchases of inputs amid weaker demand conditions, while input costs increased at a faster pace in July across most sectors, reversing June’s picture.
Bloomberg HT Consumer Confidence Index fell sharply in July
Bloomberg HT Consumer Confidence Index decreased by 8.40 points in July compared to the previous month and reached 64.23. Failure to realize wage increase expectations and the slowdown in the economy seem to be the main reasons for the sharp decline.
Looking at the details of the index, a decline was observed in the consumer’s perception of the current situation, expectations for the next 12 months and consumption tendency. Failure to realize wage increase expectations and the slowdown in the economy seem to be the main reasons for the sharp decline.
In this context, Bloomberg HT Consumer Expectations Index decreased by 3.27 pts compared to the previous month to 69.02. On the other hand, Bloomberg HT Consumption Tendency Index, which tries to measure the suitability of the current period for the purchase of durable consumer goods, automobiles and houses, fell sharply by 13.33 pts to 54.24. Consumer confidence index data signaled a relatively strong slowdown in domestic demand.