Turkey: Business confidence rises to over seven-year high in June
Sentiment among Turkish firms rose notably at the close of the second quarter, with the Real Sector Confidence Index ticking up to 113.0 in June from 110.3 in April. June’s result marked the highest print since May 2014, and has likely been impacted by the gradual reopening of the economy, providing a significant boost to expectations. Moreover, the index moved further north of the neutral 100-threshold that separates optimism from pessimism.
Looking at the details, the uptick reflected marked increases in the expectations of volume of output, export orders, and employment in the next three months. Moreover, firms’ outlook on the total amount of orders at present inched up as well, but remained entrenched in pessimistic territory. However, companies’ assessment of the general business situation returned to optimism and firms expect capital expenditure to increase somewhat in the next 12 months.