Turkey: Business confidence hits highest reading since May 2018 in October
Business confidence rose to 108.1 in October from September’s 105.3. October’s result marked the best reading since May 2018. As a result, the index moved further above the 100-threshold, separating optimism from pessimism among businesses.
The headline print reflected an improvement in firms’ views of current order books, stocks of finished goods, output in the next three months and of the general business situation. In contrast, firms’ views regarding the export orders in the next three months turned somewhat less rosy.
Turning to prices, inflation expectations for the next 12 months rose to 13.6% in October from 13.0% in September, likely influenced by continued lira depreciation. On 23 October, the lira was down 3.3% month-on-month and 25.3% year-to-date.