Look what the business world did!

Dünya Executive - - COMMENTARY -

Astudy conducted by the Central Bank revealed that the confidence of the real sector in the economy decreased again in May, falling below 100, the optimism limit. The Central Bank’s economic orientatio­n survey received responses from 1,720 businesses. Survey results were reached by aggregatin­g and weighting these responses.

The index showed confidence

in the real sector of the economy at 98.9 in May. The index had risen for four months after it went down to 91.5 in December last year. In January, it was 93.0, in February 97.2, 102.1 in March and 105.5 in April. The recovery in the index was broken in May.

Rising pessimism

While creating a real sector confidence index, many questions are asked. The most crucial of these, the one that summarizes the whole index in a sense is: “What is your opinion about the general course of your industry compared to a month ago?” Participan­ts need to choose between “more optimistic”, “same” or “more pessimisti­c”. The difference between the more optimistic and the more pessimisti­c responses gives us the balance value.

The balance value of this question was minus 21.7 in May. The ratio of those who said that they were more optimistic compared to the previous month was 5.6 percent (8.2 percent in April). The rate of who said the trend was the same was 67.1 percent (74.3 percent in April.) The rate of people who are pessimisti­c is 27.3 percent (17.5 percent in April). Thus, the optimistic-pessimisti­c difference, which was minus 9.3 percent (8.217.5) in April, rose to minus 21.7 percent (5.6-27.3) in May.

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