Confidence index increased in services, retail trade and construction sectors in Turkey

Seasonally adjusted confidence index increased by 20.2% in services, 9.6% in retail trade and 11.6% in construction sectors in July compared to the previous month.

Seasonally adjusted sectoral confidence indices, July 2020

Seasonally adjusted sectoral confidence indices, sub-indices and the rate of changes, July 2020

Services confidence index realized as 66.7

Seasonally adjusted confidence index which was 55.5 for services in June increased by 20.2% in July to 66.7. In services sector compared to the previous month, business situation over past three months sub-index increased by 42.5% to 54.5. Demand-turnover over past three months sub-index increased by 36.5% to 55.2 and demand-turnover expectation over next three months sub-index increased by 2.9% to 90.3.

Seasonally adjusted services confidence and tendency indices, July 2020

Retail trade confidence index realized as 94.6

Seasonally adjusted retail trade confidence index increased by 9.6% in July to 94.6. In retail trade sector compared to the previous month, business activity-sales over past three months sub-index increased by 43.1% to 69.6. Current volume of stock sub-index decreased by 2.9% to 110.4 and business activity-sales expectation over next three months sub-index increased by 7.3% to 103.9.

Seasonally adjusted retail trade confidence and tendency indices, July 2020

Construction confidence index realized as 87.0

Seasonally adjusted construction confidence index which was 78.0 in previous month increased by 11.6% in July to 87.0. In construction sector compared to the previous month, current overall order books sub-index became 73.9 by increasing 25.0%. Total employment expectation over next three months sub-index increased by 3.4% to 100.0.

Seasonally adjusted construction confidence and tendency indices, July 2020

In construction sector, 63.1% of the enterprises indicated at least one factor limiting their activities while 36.9% of the enterprises indicated none in July. Among the main factors limiting activities in construction sector; “financial “constraints” which was 36.8% in June realized as 38.2% in July, “insufficient demand” which was 34.5% in June realized as 31.9% in July and “other factors” which was 32.8% in June realized as 19.9% in July.

The next release on this subject will be on August 25, 2020.
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EXPLANATIONS

Sectoral confidence indices can take value between 0 and 200. It indicates an optimistic outlook when the index is above 100, but it indicates a pessimistic outlook when it is below 100.