Turkey: Business confidence jumps to eight-month high in March
March 25, 2014
The Real Sector Confidence Index published by the Central Bank rose from 104.6 points in February to 108.6 points in March. The print marked the highest level since July 2013. As a result of the increase, business sentiment rose even further above the 100-point threshold, which indicates an optimistic outlook for business conditions. The monthly improvement mainly reflects a broad-based recovery, as six of the eight categories of the index gained ground over the previous month. Businesses' views regarding both the expected volume of output as well as export orders for the next three months recorded the largest increases. Conversely, the total amount of orders and the amount of stocks of finished goods experienced a drop. Although the general business situation improved markedly in March, the aforementioned category remained below the 100-point threshold for the fourth consecutive month. FocusEconomics Consensus Forecast panelists see fixed investment growth at 1.4% in 2014, which is down 0.6 percentage points compared to last month's estimate. In 2015, panelists expect investment growth to accelerate to 4.7%.