Turkey: Business confidence rises in February
February 24, 2014
The Real Sector Confidence Index published by the Central Bank rose from 101.4 points in January to 104.6 points in February. The print marked the highest level in four months and put an end to the downward trajectory that had begun in June 2012 and had only briefly been interrupted with an uptick in September 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 eight of the ten categories of the index gained ground over the previous month. Businesses' views regarding both the expected volume of output for the next three months as well as job prospects for the next three months recorded the largest increases. Conversely, fixed investment experienced a sizeable drop. Although the general business situation improved markedly in February, it still remains below the 100-point threshold.
FocusEconomics Consensus Forecast panelists see fixed investment growth at 2.0% in 2014, which is down 1.4 percentage points compared to last month's estimate. In 2015, panelists expect investment growth to accelerate to 5.2%.