Turkey: Business confidence rises in September
September 25, 2017
The Real Sector Confidence Index published by the Central Bank recorded a back-to-back increase in September, rising to 111.6 points from 110.7 points in August. As a result, the index moved further above the 100-point threshold indicating optimism rather than pessimism among firms.
The results were mixed for the month. Companies’ assessments of overall demand and notably domestic demand improved over the previous month, but their views on output levels and unit costs worsened. Businesses’ perception of the economy’s current health also improved, although firms were slightly less upbeat regarding demand from overseas. Regarding the near-term outlook, the picture is bleaker. While production and employment expectations improved in September from the previous month, projected demand and firms’ views on unit costs deteriorated. In annual terms, all forward-looking sub-components except employment worsened.
Author: David Ampudia, Economist