Solution process improves consumer confidence in Turkey

Consumer confidence in Turkey has improved on a quarterly basis, helped by the positive domestic political developments concerning Kurdish issue according to the report of European Commission The European Commission on Monday stated that the solution process had a positive contribution in the increase of the consumer confidence in Turkey, in the first quarter of 2013. The European Commission published the first Candidate and Pre-accession Countries' Economic Quarterly report for 2013. Although the momentum of economic activity in Turkey was very weak at the turn of the year, high frequency data indicate that output has returned to a growth path in the first quarter, according to the report. "Industrial production was 4.4 percent higher year-on-year in February compared to a 2.5 percent annual increase in 2012. The manufacturing PMI has consolidated itself firmly in expansionary territory with an index value of 52.3 in March. The business sentiment index has risen by 6.8 points quarter-on-quarter to 107.2," report stated. Consumer confidence has also improved on a quarterly basis, helped by the fall in bank lending rates and positive domestic political developments concerning Kurdish issues. The pace of import growth suggests a mild increase in domestic demand. Exports have remained strong as Turkish exporters continue to diversify from Europe to faster-growth regions, particularly in the Middle East and North Africa, the report added. In the first quarter of 2013, the outlook for employment growth strengthened gradually. In March, the number of businesses planning to increase their payrolls over the next three months was four times higher than the number of firms expecting to shed labour.