Business sentiment in Turkey’s service, retail and construction industries deteriorate further in August

By bne IntelliNews September 22, 2015

Business sentiment in all three sectors, namely construction, retail and service, deteriorated further in September after the confidence in all three industries declined in August, the statistics office TUIK announced also on September 22 the results of its monthly confidence survey. The central bank will release on September 28 the results of real sector confidence survey for September.

The political uncertainty and escalating violence continue to weigh on business sentiment. Latest surveys by the polling agencies regarding snap elections on November 1 have been pointing mixed results as always. Some surveys from the government side show that the Justice and Development Party (AKP) has risen its votes to recover its one-party government, however, there is no other survey suggesting a solution to the current hung parliament. The other factor that has been affecting business sentiment is the weaker currency.

The seasonally-adjusted service sector confidence index declined 2.3% m/m in September, after declining 0.6% m/m in August, according to the TUIK data. The seasonally-adjusted retail industry confidence index that decreased 2.6% m/m in August also deteriorated by 4.6% m/m in September. The seasonally-adjusted construction industry confidence index declined 2.1% m/m in the month, after declining a 0.5% m/m in August.

Services sector, which accounts to 58.4% of the economy in real terms, grew 4.1% in Q2, thanks to the significant growth rates achieved by financial services and insurance (9.1% growth in Q2, 12.6% share in overall GDP), wholesale and retail trade (2.6% growth in Q2, 13% share in overall GDP) and transportation (2.3% growth in Q2, 12.6% share in total) industries, according to the latest GDP data. Industrial production, which accounts to 34.6% of the economy in real terms, also grew 4.1% while manufacturing industry (25.9% share in overall GDP) grew 5% and construction output (5.9% share in total) grew 2% in the quarter. 

Consumer confidence declined by 6.1% m/m to 58.5 in September, its lowest in more than six years, a survey carried out jointly by the statistics office TUIK and central bank showed on September 21

Seasonally-adjusted sectoral confidence
  Aug Sep m/m, % / Aug m/m, % / Sep
Services Confidence 99.99 97.67 -0.6 -2.3
Business Situation (past 3-months) 96.02 93.88 2 -2.2
Demand-turnover (past 3-months) 94.56 91.93 1.6 -2.8
Deman-turnover (next 3-months) 109.4 107.19 -4.6 -2
Retail Trade Confidence 100.97 96.27 -2.6 -4.6
Sales (past 3-months) 97.98 88.89 4.9 -9.3
Stock Volume 99.72 104.12 -1.8 4.4
Sales (next 3-months) 105.2 95.81 -9.4 -8.9
Construction confidence 82.1 80.37 -0.5 -2.1
Order books 63.61 63.87 -4.9 0.4
Employment (next 3-months) 100.6 95.87 2.5 -3.7
source: tuik

Related Articles

Turkey postpones plan to sell firms seized after coup attempt

Turkey has put on hold its plan to sell almost 600 companies worth about $10bn seized in the aftermath of the failed military coup, people familiar with the matter told Bloomberg on March 23. The ... more

Turkey to maintain EU economic relations but review political ties, says Erdogan

Turkey will maintain its commercial ties with the European Union but will review its political and administrative ties with the bloc after the April 16 referendum, Turkish President Recep Tayyip ... more

Turkey easily tops table for Twitter content removal requests

Turkey accounted for more than half of all content removal requests received worldwide by Twitter during the second half of 2016, according to the social media company’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss