Turkish business confidence down again in May, CUR rises

Turkish business confidence down again in May, CUR rises
By bne IntelliNews May 25, 2018

Turkey’s business sentiment index declined in May for the second consecutive month from 111.9 in March, the highest level seen since June last year, central bank data showed on May 25.

The confidence index declined by 1.17% m/m to 109.9 in May after posting a 0.63% m/m decline to 111.2 in April.

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

Five of the business sentiment survey’s eight main sub-indices deteriorated in May compared to the previous month’s readings.

The 100-point level separates optimism from pessimism.

Meanwhile, the seasonally-adjusted business confidence index declined further, though very slightly, from 106.8 in April to 106.7 in May, the lowest level since June 2017.

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

The central bank also reported on May 25 that the capacity utilisation rate (CUR) of Turkey's manufacturing industry rose from 77.3% in April to 77.9% in May.

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

The seasonally-adjusted services confidence index decreased, for the fourth month in a row, by a sharp 5.3% m/m to 92 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 fourth consecutive month, by 3.2% m/m to 97.1. The index saw 106.2 in January and it has declined ever since.

The seasonally-adjusted construction confidence index decreased by 2.1% m/m to 77.2. The index rose to 87 in January and then posted declines in the following four months in a row.

Consumer sentiment in Turkey declined by 2.8% m/m to 69.9 on the index in May, the lowest level recorded since December, data from national statistics office TUIK showed on May 23.