Turkey’s business sentiment index declined for the third consecutive month in June, taking it further down from the 111.9 seen in March, the highest level recorded since June last year, central bank data showed on June 25.

The confidence index declined by 4.82% m/m to 104.6 in June after falling 0.63% m/m and 1.17% m/m in April and May, respectively.

It should be noted that the June confidence data do not include the days after the completion of the June 24 elections and the effect on sentiment of the vote.

The index was at 103.3 in December last year, the lowest level registered since the previous January.

Seven of the business sentiment survey’s eight main sub-indices deteriorated in June compared to the previous month’s readings. The sub-index measuring export orders over the next three months fell to 115 points from 124.2 in May and 136.1 in March.

The 100-point level separates optimism from pessimism with this data.

Meanwhile, the seasonally-adjusted business confidence index declined further from 106.7 in May to 102.5 in June, the lowest level since January 2017.

The adjusted index saw 110.9 points in January, the highest level since October last year, and then posted declines for the next five months.

The central bank also reported on June 25 that the capacity utilisation rate (CUR) of Turkey's manufacturing industry rose from 77.9% in May to 78.3% in June, the highest level posted since December.

Also on June 25, the statistics institute TUIK announced that business sentiment in construction, retail and services continued to deteriorate in June.

The seasonally-adjusted services confidence index decreased, for the fifth month in a row, by 0.8% m/m to 91.2 in the month. The index saw 102 in January and it has declined since then.

The seasonally-adjusted retail confidence index also declined for the fifth consecutive month, by 2.8% m/m to 94.4. The index saw 106.2 in January and it has declined ever since.

The seasonally-adjusted construction confidence index decreased by 2.4% m/m to 75.3. The index rose to 87 in January and then posted declines in the following five months in a row.