Real sector confidence index declines

ANKARA

The real sector confidence index declined from 106.4 in June to 103.7 in July, the Central Bank’s regular monthly survey showed.

Despite the decline on a monthly basis, the index remained above the 100-point threshold, which separates pessimism from optimism among Turkish businesses.

On a seasonally adjusted basis, the headline confidence index dropped from 104.6 to 102.5.

The sub-index, measuring businesses’ assessment of the general outlook eased from 79.4 in June to 78.2 in July,

The sub-index for the current orders plunged from 91.8 to 85.8, while the index for orders received for the next three months improved from 101.8 to 102.3

The sub-indices for export orders and production volume in the next three months declined in July from the previous month.

The Central Bank survey also showed that that the index for fixed capital investment expenditures fell from 127.7 to 123.9 and the employment index for the next three months declined from 115.9 from 112.4.

On July 25 the Turkish Statistical Institute (TÜİK) separately unveiled confidence data for the key services, retail, and construction industries.

In the services sector, the business morale indicator declined by 1.5 percent month-on-month in July after falling 1.7 percent in June from the previous month.

The confidence index for the retail sector, which was down 2.5 percent monthly in June, fell further by 4.5 percent.

In the construction sector, the index improved 2.4 percent in July, after registering a 1.7 percent increase in June.