Turkey: Business confidence rises in January
January 21, 2011
The Real Sector Confidence Index published by the Central Bank rose from 106.4 points in December to 113.6 points in January, remaining 9.4 points above the level observed in the same month the previous year. Confidence has remained above the 100-point threshold that separates optimistic from pessimistic territory since January 2010, suggesting that the economic recovery remains firmly entrenched. The improvement in business sentiment reflected increasingly optimistic perceptions regarding export orders for the next three months, based on the weakening of the Turkish lira over the last two months. Respondents were also more upbeat regarding the volume of output for the next quarter, which suggests that the strong momentum of the Turkish economy will persist in the first quarter of 2011.