May 23 2019

Turkish manufacturers turn pessimistic again in May

Turkish manufacturers have become pessimistic about their business activities, investments and order books once again, a monthly survey conducted by the central bank showed.

Confidence among industrial companies fell to 98.9 in May from 105.5 in April, the central bank said on its website on Thursday. That was the lowest reading since February after two months of increasing confidence.

Any reading below 100 reflects a pessimistic outlook for economic activity.

Industrial companies in Turkey are seeking to maintain profit levels during an economic downturn. The economy fell into recession in the second half of last year and consumer price inflation stands at nearly 20 percent. Losses for the lira have also made foreign currency-denominated loans more expensive and have increased the cost of imported goods and materials.

The central bank’s survey showed that confidence among manufacturers concerning the general business situation and expectations for orders fell by the most.

Fixed investment expenditure dropped to 95.7, the lowest level since December and equalling the worst reading since February 2014, according to the data.