Turkey: Business confidence decreases in December
December 28, 2010
The Real Sector Confidence Index published by the Central Bank fell from 107.6 points in November to 106.4 points in December, but is 14.3 points above the level observed in the same month last year. Despite the monthly drop, the index remains above the 100-point threshold that separates optimistic from pessimistic territory since January 2010, suggesting that the recovery in investment remains firmly entrenched. The deterioration in business sentiment reflected increasingly pessimistic perceptions regarding the output volume and the employment level in the short run. That said, these negative results were partially offset by respondents' increasing optimism about fixed investment expenditures and exports in the near future.