Turkey: Business confidence slips in August
August 25, 2015
The Real Sector Confidence Index published by the Central Bank fell from 105.4 in July to 103.7 in August, hitting a five-month low. As a result, business confidence moved closer to the 100-point threshold, which indicates an optimistic outlook for business conditions.
August’s result showed that businesses were more pessimistic regarding the general business situation in Turkey. In addition, firms were less optimistic regarding total amount of orders over the next three months. Moreover, the slip in business confidence comes against growing uncertainty regarding Turkey’s political and economic situation. A government has still yet to be formed following 7 June’s parliamentary elections and the lira has depreciated sharply against the USD in recent weeks.