World Economy

Drop in Turkey’s Confidence Index

Drop in Turkey’s Confidence IndexDrop in Turkey’s Confidence Index

Confidence in the service, retail and construction sectors dropped in August, a Tuesday report by the Turkish Statistics Institute revealed, drawing a dismal outlook regarding market activity.

The report, which measures the attitude of business leaders through a series of polls on planned levels of investment and overall expectations, saw confidence in the service and construction sectors contract by 0.7% and 2.6% in the retail sector, in August compared to the previous month, Today’s Zaman reported.

Decrease in the services confidence index stemmed from the decreased number of managers who expect an increased “demand-turnover” in the coming three months.

Downturn in the retail trade confidence index was traced to the decreased number of managers who found current stock volumes below normal for the past season and who expect an increase in “business activity sales” over the next three months.

Decline in the construction confidence index was due to the decreased number of managers evaluating “current overall order books” as above seasonal norms.

The confidence index in services declined from 101.37 in July to 100.65 in August, while it dropped from 104.6 to 101.86 in the retail sector and retreated from 82.7 to 82.1 in the construction sector in the same period.

In a separate report on Tuesday, the Turkish Central Bank said business confidence among Turkish manufacturers also dropped, falling from 105.4 points in July to 103.7 points in August.

Both TurkStat and the bank calculate confidence indices based on a range between 0 and 200 points, where a sub-100 score indicates a downbeat projection and more than 100 reflects an optimistic outlook.