Business morale deteriorates, shows survey

ANKARA

Confidence among Turkish businesses has declined for a second consecutive month in July, a survey conducted by the Central Bank shows.

The real sector confidence index dropped from 108.2 in June to 106.8 in July, the Central Bank said on July 25.

Any index figure above the 100 mark indicates optimism among companies.

In May, the index was 108.3, recovering sharply from the previous month’s 105.2.

The sub-index measuring companies’ assessment of the general business situation fell from 94.7 last month to 90.1 in July but the index for current orders rose from 85.6 to 86.1.

The index for export orders in the next 3 months declined from 122.2 to 120, while the production volume index for the same period eased from 125 to 124.8.

The Turkish Statistical Institute (TÜİK) separately reported on July 25 that, confidence in the services sector fell by 0.6 percent in July from June, when the confidence index in the sector rose 0.6 percent month-on-month.

The confidence index for the retail industry plunged 2.6 percent after advancing 0.9 percent in June, while in the construction sector confidence fell 0.9 percent which came on top of the 3.5 percent month-on-month decline recorded in June.