Turkey: Business confidence rises to one-year high in May
May 24, 2011
The Real Sector Confidence Index published by the Central Bank rose from 116.7 points in April to 117.2 points in May, which marked the highest level since the post-crisis peak of 119.3 recorded in April last year. With the May increase, the index moved further above the 100-point threshold that separates optimistic from pessimistic territory, suggesting that confidence within the business community will continue to support fixed investment growth. The improvement in business sentiment reflected rising optimism regarding total current orders as well as orders in the past three months, suggesting strong economic activity during the second quarter. That said, these positive results were partially offset by a slight fall in the perception regarding fixed investment expenditures, which nonetheless remains in optimistic territory.