Turkey: Business confidence inches down but remains elevated in November
Business confidence inched down from 109.6 in October to 108.4 in November, but the index remained above the neutral 100-threshold that separates optimism from pessimism.
Midway through the fourth quarter, confidence cooled slightly on the back of somewhat less upbeat views on expected output volumes, expected employment, and export orders expectations. Moreover, firms considered the general business situation at present to be worse than in the prior month. More positively, sentiment regarding order books and stocks of finished goods at present turned less pessimistic.
Meanwhile, producer price inflation expectations continued to rise in November, coming at 30.1% compared to October’s 27.7%. November’s print marked the highest reading since at least January 2007, likely influenced by renewed pressure on the currency coupled with ongoing supply bottlenecks.
Analysts at the EIU added:
“Despite its structural shortcomings, Turkey’s catch-up potential is considerable, and the economy is competitive. Normalising global economic conditions and still robust business confidence should support growth in that year.”