The economic term we use the most after inflation this year is recession, that is, recession in the economy; The decrease in foreign demand, rising costs and financing bottlenecks have turned production upside down in many sectors. Capacity utilization in energy-intensive sectors such as textile, steel, copper, aluminum, casting and cement fell below 70 percent.
In addition to the problems related to the recession, the main difficulty faced by the industrialists is high inflation and accordingly increasing financing needs and increasing borrowing rates despite the decrease in policy interest rates.
Recession outside, high energy costs inside; It reduced the capacities below 70 percent in sectors such as steel, copper, aluminum, casting, textile and cement. In the glass sector, which could not stop production, the recession inflated the stocks. Worried about further decrease in capacities, the business world wants businesses to be supported with sectoral price tariffs and surveillance measures.
REcession AFFECTED MANY SECTORS
According to the news of Merve Yiğitcan from Ekonomim.com; The slowdown in exports due to the recession and the increase in energy costs, as well as the lack of equity, brought the capacity utilization rates to dangerous levels in certain sectors. While the capacity utilization rates in energy-intensive sectors such as textile, steel, copper, aluminum, casting and cement, which have an important share in exports, fell below 70 percent, the decrease in domestic and foreign demand in particular inflated the stocks in glass, which is one of the continuous process sectors.
The slowdown in the industrial wheels is also seen in the electricity consumption data. Because monthly electricity consumption amounts have been on the decline since July 2022 when compared to the previous year. Speaking to EKONOMİ newspaper, sector representatives demanded that energy costs be reduced immediately in critical sectors and pointed out that measures should be taken on a sectoral basis in order to protect the competitiveness of exporters.
ELECTRICITY CONSUMPTION HAS DECLINED FOR 5 MONTHS
The Manufacturing Industry Capacity Utilization Rate, announced by the Central Bank, was 76.5 percent in December. The rate, which rose to the highest level of the year with 78 percent in May, decreased to 75.9 percent until November, and experienced a limited increase in December. This ratio across the manufacturing industry is below 70 percent in some sub-sectors.
Capacity utilization rates, curbed by the increase in energy costs and the decline in domestic and foreign demand, started to bring employment losses, especially in the textile sector. In addition, it is worrying that businesses that cannot produce because they cannot find financing are starting to miss their export orders. Decreasing capacity usage in factories is also seen in electricity consumption data. Electricity consumption in November decreased by 6.4 percent compared to the same month of the previous year. The decrease rate in October was 3.6 percent; The rate of decrease in September was 0.8 percent.
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