Turkey: Business confidence turns optimistic in July
Business confidence rose to 100.7 in July from June’s 92.6. July’s reading is the highest in five months, and marks the third consecutive month of improved readings, after business confidence slumped to a multi-decade low in April due to the coronavirus pandemic. Moreover, the index breaks the 100-threshold, signaling a return to an optimistic outlook regarding economic activity. This likely comes on the back of a gradual easing of restrictive measures, particularly in Turkey itself and neighboring EU.
July’s rise was driven by improved sentiment across both present-day and forward-looking subcomponents. In terms of present-day subcomponents, businesses became more confident about overall order books, export order books and stocks of finished goods. Meanwhile, sentiment regarding all forward-looking subcomponents improved.