Turkey construction sector confidence takes another dive

Confidence in Turkey’s maligned construction industry took another jolt in February, according to an official survey.

An index of confidence among businesses in the sector dropped to 51.8 this month from 56.7 in January, the lowest level since a currency crisis peaked in August last year, a Turkish Statistical Institute survey showed on Friday. Any reading below 100 indicates pessimism about the future.

Turkish sectoral confidence survey, February
Turkish sectoral confidence survey, February

A measure of current order books dropped to 40.8 from 46.4, the data showed.

Turkey’s construction industry has been worst hit by the turmoil that swept through the economy last year. Sales of housing and the price of real estate are declining, while the government is cutting back on infrastructure contracts to save money.

Confidence in the retail industry fell to 90.8 from 92.5 in January, while service sector confidence climbed to 79.5 from 78.3.