Turkey: Business confidence drops in February
February 21, 2011
The Real Sector Confidence Index published by the Central Bank fell from 113.6 points in January to 111.0 points in February, remaining 5.8 points above the level observed in the same month the previous year. Confidence has remained above the 100-point threshold that separates optimistic from pessimistic territory since January 2010, suggesting that high confidence in the business community continues to support fixed investment growth. The deterioration in business sentiment reflected decreasing optimism regarding total orders in the past three months, which suggests that activity can moderate in the first quarter of 2011. However, respondents were more upbeat regarding output for the next three-month period, pointing to a pick-up in overall economic activity from the second quarter onwards.