Turkey’s State Statistics Institute reports that Turkey’s leather industry was operating at 57.1% of its total capacity in October 2004, as compared with 73.7% in the same month in 2003. The main reasons given by Turkish leather industry companies as to why they were not operating at full capacity were low demand on foreign markets, followed by low demand on the domestic Turkish market. In comparison, manufacturing sector companies in Turkey were operating at an average of 72% of their total capacity in October, a year-on-year fall of 1.2%.