Turkish manufacturers gain pace after near standstill

Credit: REUTERS/UMIT BEKTAS

Turkish manufacturers grew more optimistic and a measure of potential output rose this month as the economy continued to regain its pace after coronavirus fallout brought activity to a near standstill.

Adds capacity utilisation

ISTANBUL, Aug 25 (Reuters) - Turkish manufacturers grew more optimistic and a measure of potential output rose this month as the economy continued to regain its pace after coronavirus fallout brought activity to a near standstill.

Business confidence among manufacturers surged to 106.2 points in August from 100.7 a month earlier, data from the central bank showed. Scores above and below 100 reflect optimism and pessimism respectively.

Turkey's capacity utilisation rate was 73.3% this month compared to 70.7% in July, separate data showed. The measure of potential output use hit a 10-year low of 61.6% in April as a partial lockdown was imposed, closing many factories and businesses.

Turkey mostly lifted the lockdown in June but, after a historic contraction in the second quarter, the economy is expected to shrink this year.

In recent months new coronavirus cases have remained mostly steady according to official data, though they rose above 1,400 on Monday. In-person school openings were delayed to later in September, and masks and distancing are required in public.

(Reporting by Ezgi Erkoyun; Editing by Jonathan Spicer)

((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))

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