Turkish sectoral confidence indices drop in August

Turkish services sentiment index fell in August. On a seasonally adjusted basis, the confidence index fell 4.2 percent to 88 in August from July’s 91.9, according to Turkish Statistical Institute. The fall in the sentiment was mainly driven by the decreased number of managers evaluating “business situation” as improved, “demand-turnover” as increased over the last three months and expecting a rise in “demand-turnover” over the next three months.

Within services sector, business situation, demand-turnover, and demand-turnover expectation indices dropped 2.9 percent, 4 percent and 5.5 percent, respectively on a sequential basis.

Seasonally adjusted retail trade sentiment index fell 4 percent in August to 93.4. This downswing in the retail trade sentiment index resulted from the decreased number of managers expecting a rebound in “business activity-sales” in the next three months. The number of managers evaluating improved “business activity-sales” in the past three months and “current volume stock” as below normal for the season increased.

Within retail trade sector, business activity-sales expectation index fell 13.2 percent while business activity-sales and current volume of stock indices rose 1.4 percent and 0.8 percent, respectively compared to the previous month.

Meanwhile, seasonally adjusted construction sentiment index fell 10.7 percent to 68.8 in the moth. The drop was driven by the decreased number of managers evaluating “current overall order books” as above normal for the season and expecting an increase in “total employment” over the next three months.

Within construction sector, current overall order books and total employment expectation indices fell 14.1 and 8.3 percent, respectively, on a sequential basis.