Turkey: Business confidence logs back-to-back decrease in November
November 24, 2017
The Real Sector Confidence Index published by the Central Bank fell from 109.5 in October to 106.3 in November, marking the lowest reading in nine months as well as the second consecutive month of worsening sentiment. Despite the decline, the index remains above the 100-point threshold that separates optimism from pessimism among firms, where it has been since February.
November’s dip reflected companies’ less optimistic assessments on both future and present economic conditions. Their prospects on output, demand and employment growth all deteriorated from the previous month, while current order books only saw an improvement among export-oriented firms.
Firms’ view on the economy’s performance over the last three months was also more downbeat than reported one month ago, with only output for the three-month period receiving an overall positive assessment by companies. Regarding prices, firms continued to digest multi-year high inflation and unanchored price expectations amid a plunging lira. They expected input and output inflation to accelerate over the next three months.
Author: David Ampudia, Economist