Turkey: Business confidence dips to seven-month low in August
August 27, 2013
The Real Sector Confidence Index published by the Central Bank fell from 108.7 points in July to 107.5 points in August, reaching the lowest level in seven months. Despite the monthly decrease, business sentiment still remains above the 100-point threshold, which indicates an optimistic outlook for economic activity.
The deterioration in business confidence was mainly due to a sharp drop in the total amount of orders in the past three months and in fixed investment expenditure - which hit the lowest level since September 2012. On the other hand, the general business situation improved markedly in August, although it remained in the red for the second consecutive month.
FocusEconomics Consensus Forecast panellists see fixed investment growth at 3.7% this year, which is up 0.4 percentage points from last month's estimate. In 2014, investment growth is likely to accelerate to 6.0%.