Turkey: Business confidence in May recedes slightly from April's 22-month high
May 25, 2016
Although supportive-growth rhetoric from authorities is propelling businesses’ sentiment, recent political turmoil following Prime Minister Ahmet Davutoglu’s resignation has weighted slightly on economic confidence. The Real Sector Confidence Index published by the Central Bank fell from April’s nearly-two-year high of 110.1 to 109.8 in May. Nevertheless, business confidence remains above the 100-threshold and indicates an optimistic outlook for business conditions.
May’s result showed that businesses were slightly less optimistic regarding the total amount of orders, the expected output volume in the next three months, job prospects in the coming three months, export orders in the next three-month period and fixed investment. Moreover, the general business situation deteriorated and dipped below the 100-threshold. Conversely, the total amount of orders in the previous three months climbed to nearly a three-year high.