Turkey: Business confidence reaches highest level in nearly two years
April 25, 2014
The Real Sector Confidence Index published by the Central Bank climbed from 108.6 points in March to 112.7 points in April. The print marked the highest level since May 2012. As a result of the increase, business sentiment rose even further above the 100-point threshold, which indicates an optimistic outlook for business conditions.
April's result showed that five of the eight categories that compose the index improved over the previous month. Notable increases were recorded in businesses' views regarding the total amount of orders in the next three months as well as in the general economic situation. Conversely, the amount of stocks of finished goods, exports orders in the next three months, and prospects in fixed investment experienced a drop.
FocusEconomics Consensus Forecast panelists see fixed investment contracting 0.1% in 2014, which is down 1.5 percentage points compared to last month's estimate. In 2015, panelists expect investment growth to accelerate to 4.0%.
Author: Ricardo Aceves, Senior Economist