Turkey: Business confidence inches down in July
July 25, 2011
The Real Sector Confidence Index published by the Central Bank inched down from 114.6 points in June to 114.1 points in July. With the moderate slide in July, the index edged closer to the 100-point threshold that separates optimistic from pessimistic territory, suggesting weakening confidence within the business community. Nonetheless, the index remains in optimistic territory, which bodes well for fixed investment growth. The deterioration in business sentiment reflected rising pessimism regarding export orders as well as output volume in the next three months, suggesting softer economic activity at the outset of the third quarter. On a positive note, fixed investment expenditures improved after deteriorating over the previous two months.