Turkey: Business confidence falls in November.
November 24, 2020
Business confidence dropped to 103.9 in November, down from October's 108.1. The print marked a four-month low, however, the index remained above the 100-threshold that separates optimism from pessimism among businesses.
Cooling confidence came on the back of a downtick in firms’ views of the general business situation. In addition, sentiment regarding export orders in the next three months also weakened, while views on the current level of finished goods turned pessimistic and optimism regarding the volume of output in the next three months eased. That said, firms are more likely to invest.
Turning to prices, producer price inflation expectations for the next 12 months rose to 14.7% in November from 13.6% in October, likely reflective of the lingering pass through effect of the recent lira slide although the currency regained some ground on the heels of the recent Central Bank action.
Author: Jan Lammersen, Economist