Turkey: Business confidence dips in June
June 24, 2011
The Real Sector Confidence Index published by the Central Bank dropped from 117.2 points in May to 114.6 points in June, which marked the first drop since March. With the June drop, the index edged closer to the 100-point threshold that separates optimistic from pessimistic territory, suggesting weakening confidence within the business community. Nonetheless, the index remains in optimistic territory, which bodes well for fixed investment growth. The deterioration in business sentiment reflected rising pessimism regarding total current orders as well as export orders in the next three months, suggesting softer economic activity during the second quarter. In addition, fixed investment expenditures deteriorated for the second consecutive month but remain in optimistic territory.