Turkey: Business confidence falls to five-month low in July
July 25, 2013
The Real Sector Confidence Index published by the Central Bank fell from 111.8 points in June to 108.7 points in July, marking the lowest reading in five months. That said, the index is still 1.4 points above the level observed in the same month last year. A reading above the 100-point threshold indicates an optimistic outlook for economic activity.
The deterioration in business confidence was broad-based, as all of the components that configure the index recorded losses over the previous month. The largest decreases were seen in the total amount of orders and the general business conditions - which hit the lowest level since April 2009.
FocusEconomics Consensus Forecast panellists see fixed investment growth at 3.3% this year, which is down 1.3 percentage points from last month's estimate. In 2014, investment growth is likely to accelerate to 7.9%.
Author: Ricardo Aceves, Senior Economist