The real sector confidence index increased to 107.9 in April, extending its advance for the fourth consecutive month, data of the central bank showed on April 24. The index value was 103.5 in March.

The increase in the confidence index was due to businesses’ positive assessments of production volume, employment conditions in the next three months and general economic outlook. The sub-index for current sales volume increased to 89.1 in April from 83.4 in March while total orders index for the past three months rose to 103.4 from 89.3. Export order index for the next three months, however, dropped slightly to 127.7 from 127.8.

On a seasonally-adjusted basis, the real sector confidence index was 102.7 in April, down from 101.2 in March, said the central bank.

A separate confidence survey conducted by the statistics institute TUIK showed on April 24 that business sentiment in service, retail and construction sectors continued to deteriorate in April.

The seasonally-adjusted service sector confidence index declined, for the second consecutive month, 0.5% m/m in April, after decreasing 0.7% m/m in March. The sub-index measuring demand for services in the past three months declined 0.9% m/m in the month, following a 0.1% m/m decrease in March.

The seasonally-adjusted retail industry confidence index that was down 0.5% m/m in March declined 1.2% m/m in April, marking for the fourth consecutive decline in a row. Companies expect sales conditions to deteriorate in the next three-month while businesses surveyed by TUIK reported that their current inventories increased. Retail companies also reported that their sales have risen in the past three months.

Confidence in the construction sector also deteriorated, for a second consecutive month, in April. The seasonally-adjusted construction industry confidence index declined 2.7% m/m in the month, after declining a 1.6% m/m in March. The sub-index measuring the level of current orders posted a 0.7% m/m decrease in the month, after falling 1.4% m/m in March.