Turkey: Business confidence plummets in September
September 28, 2015
The Real Sector Confidence Index published by the Central Bank fell from 103.7 in August to 99.1 in September, which marked the worst outcome since December 2012. As a result, business confidence now lies below the 100-point threshold and indicates a pessimistic outlook for business conditions.
September’s result showed that businesses were more pessimistic regarding the general business situation in Turkey. In addition, firms were less optimistic regarding the total amount of orders over the next three months and employment expectations. Moreover, the slip in business confidence comes against growing uncertainty regarding Turkey’s political and economic situation. Snap elections are scheduled for 1 November after a government was unable to be formed following 7 June’s parliamentary elections and the lira has depreciated sharply against the USD in recent weeks.