Turkey: Business confidence slides in December
December 28, 2015
Positive spillovers from November’s conclusive parliamentary elections are starting to fade and the Real Sector Confidence Index published by the Central Bank moderated in December. The index fell from November’s 115.2 to 112.2 in December. Nevertheless, business confidence remains above the 110-point threshold and indicates an optimistic outlook for business conditions.
December’s result showed that businesses were more pessimistic regarding the general business situation in Turkey as well as the expected volume of output for the next three months, which hit a two-year low. Moreover, export orders for the coming three months and job prospects declined to a one-year low in December. In contrast, stocks of finished goods climbed to a 13-month high, while the total amount of orders over the past three months and fixed investment expectations both recorded mild gains compared to the previous month.