Turkey: Business sentiment improves in October
Business confidence edged back into optimistic territory, with the indicator rising from 98.8 in September to 100.9 in October. The improvement in the headline print came on the back of less pessimistic views on current order books and stocks of finished goods. Moreover, views on expected export orders and employment in the next three months remained upbeat, while sentiment regarding expected output in the three months ahead remained elevated despite a small drop. Meanwhile, businesses’ assessment of fixed investment expenditure improved, likely in part due to the Central Bank’s monetary policy loosening. On the other hand, views on the general business situation worsened.
Inflation expectations, meanwhile, fell for the fifth month running in October, dropping from 18.4% in September to 16.2%. However, expectations remained elevated nonetheless and stands in contrast to the government’s new inflation forecast of 8.5%.