Confidence Indices Fall In All Sectors In September

– Following the decline in consumer confidence index, all sectoral confidence indices fell under the value of 100 in September.

While sectoral confidence indices range between 0-200 values, if the index is higher than 100 this shows an optimistic outlook and if the value is lower than 100 this shows a pessimistic outlook.

According to the data released by Turkstat, confidence declined in all sectors, therefore in services, retail trade and construction confidence indexes.

Turkstat has announced on Sept. 21 the confidence index has fallen to the level of 58.52 in September, to the lowest level since the global crisis numbers recorded in January 2009.

Services confidence index drops by 2.3 percent

Seasonally adjusted confidence index for services dropped from 99.99 to 97.67 in September against August.

This fall in the services confidence index stemmed from the declined number of managers evaluating an improved “business situation” and risen “demand-turnover” over the past three months plus decreased number of managers expecting an increase in “demand-turnover” over the next three months.

Accordingly, the business situation, demand-turnover and demand-turnover expectation indices fell by 2.2 percent, 2.8 percent and 2 percent respectively compared to the previous month, in services sector.

Retail trade confidence index falls by 4.6 percent

Meanwhile, seasonally adjusted retail trade confidence index fell to 96.27 in September. This drop in the retail trade confidence index stemmed from the fall in number of managers evaluating an increase in “business activity-sales” over the past three months and expecting a rise in “business activity-sales” over the next three months. On the other hand, the number of managers evaluating “current volume of stock” as below normal for the season rose.

While business activity-sales and business activity-sales expectation indices fell by 9.3 percent and 8.9 percent respectively, current volume of stock index increased by 4.4 percent compared to August, in retail trade sector.

Construction confidence index drops by 2.1 percent

Seasonally adjusted confidence index that has seen 82.10 in construction sector in August fell to 80.37 in September. This drop in the construction confidence index resulted from the fall in the number of managers expecting an increase in “total employment”, over the next three months. On the other hand, the number of managers evaluating “current overall order books” as above the seasonal normal rose.

While total employment expectation index fell by 3.7 percent, current overall order books index rose by 0.4 percent compared to the previous month, in construction sector.

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