Turkey: Political uncertainty weighs on business confidence in August
August 25, 2016
The Real Sector Confidence Index published by the Central Bank decreased from July’s 108.0 to 103.6 in August. Business sentiment fell to a seven-month low as July’s failed coup and the subsequent purge fueled uncertainty among businesses. Despite August’s drop, the index is above the 100-threshold and indicates an optimistic outlook for business conditions.
August’s result showed that businesses are becoming more pessimistic as nearly all the categories that comprise the index lost ground over July’s reading. The total amount of orders in the previous three months declined to a 17-month low, while the stocks of finished goods fell to the lowest level since June 2015. The general business situation also recorded a sizeable drop in August. On the upside, both export orders for the next three months and fixed investment expectations expanded.