Turkey: Business confidence inches down in September but remains elevated
Turkish firms were slightly less optimistic at the close of the third quarter compared to the prior month, with the Real Sector Confidence Index easing to 105.3 in September from 106.2 in August. The print came on the back of less rosy views on stocks of finished goods, output prospects and employment expectations. On the other hand, the amount of orders over the past three months and expected export orders in the next three months were viewed more favorably. That said, the general business situation according to firms deteriorated.
Turning to prices, inflation expectations for the next 12 months jumped to a five-month high 13.0% in September from 12.3% in August, likely influenced by continued lira depreciation: On 23 September the lira was down 4.7% month-on-month and 22.8% in year-to-date terms against the U.S. dollar.