Turkey: Business confidence rises towards record high
March 25, 2011
The Real Sector Confidence Index published by the Central Bank rose from 111.0 points in February to 114.8 points in March, remaining 2.7 points above the level observed in the same month the previous year. Confidence has lingered above the 100-point threshold that separates optimistic from pessimistic territory since January 2010, suggesting that strong sentiment within the confidence in the business community will continue to support fixed investment growth. The improvement in business sentiment reflected increasing optimism regarding the economic situation over the next three months, as all three forward looking components ? volume of output, total employment and export orders for the following three-month period ? increased over the previous month. Moreover, business sentiment is quickly approaching both the record high value of 119.5 tallied in April 2007 as well as the post-crisis high of 119.3 tallied in April 2010. That said the elevated level of optimism points to investment remaining a strong growth driver in Q1 2011.