Turkish industrial confidence this month fell to the lowest since January, adding to evidence that the economy is slowing.
Industrial confidence dropped to 104.5 in August from 107.3 a month earlier, according to a statement from the central bank in Ankara today. Readings above 100 indicate an optimistic outlook for economic activity, while readings below 100 indicate pessimism.
Economic data show Turkey’s economy is cooling and the central bank will gradually lower borrowing costs to stimulate demand, central bank Governor Erdem Basci told reporters on Aug. 25.
Business conditions deteriorated in July, when the purchasing manufacturers’ index declined to the lowest since August 2011 and showed a contraction for the first time since March, according to a report from Markit Economics and HSBC Holdings Plc on Aug. 1.
Turkey’s economy grew an annual 8.5 percent last year, the fastest pace among major world economies other than China and Argentina. The economy shrank 0.4 percent in the first three months, the first contraction since March 2009, after the crisis in the euro area intensified. In addition, the central bank tightened monetary policy to slow consumer demand for imports that had widened the current account deficit to a record $77.1 billion last year.