Sectoral confidence index falls in August

The seasonally adjusted confidence index, which was 101.37 for services in July, fell to 100.65 in August, according to data released by the Turkish Statistical Institute (TurkStat) yesterday. This fall stemmed from the decreased number of managers who expected an increase in demand-turnover over the next three months. Moreover, the number of managers who evaluated an improved business situation over the past three months and an increased demand-turnover over the past three months increased, the TurkStat report said. In the services sector, while the demand-turnover expectation index decreased by 4.6 percent, the business situation and demand-turnover indices increased by 2 percent and 1.4 percent, respectively, in August compared to July.

The report stressed that the seasonally adjusted retail trade confidence index also decreased by 2.6 percent to 101.86 in August. This fall stemmed from the decreased number of managers who evaluated the current volume of stock as below normal for the season and expected an increase in business activity-sales over the next three months. However, the number of managers evaluating an increase in "business activity-sales" over the past three months increased. In retail trade sector, while current volume of stock and business activity-sales expectation indices declined by 1.8 percent and 9.3 percent, respectively, the business activity-sales index increased by 4.7 percent in August compared to the previous month.

The seasonally adjusted confidence index, which was 82.70 for the construction sector the previous month, decreased 0.7 percent in August to hit 82.10, according to the TurkStat report. This fall stemmed from the decreased number of managers who evaluated the current overall order books as above the seasonal normal. Moreover, the number of managers who expected an increase in total employment over the next three months increased. In the construction sector, while current overall order books index decreased by 4.9 percent, the total employment expectation index increased 2.1 percent in August compared to the previous month.