Confidence levels in Türkiye's services and construction sectors improved in July, while confidence in the retail trade sector declined, the Turkish Statistical Institute (TurkStat) said in a statement on Monday.

TurkStat said the seasonally adjusted services confidence index increased by 1.4% compared to the previous month, rising to 112.0 in July, indicating continued optimism among businesses operating in the sector.

The construction confidence index also posted a monthly gain, increasing by 0.6% to 83.5, reflecting a modest improvement in sentiment despite ongoing challenges facing the industry.

In contrast, the retail trade confidence index fell by 1.6% from June, declining to 111.0, suggesting a slight weakening in business expectations and market conditions within the retail sector.

Business confidence indices are considered important indicators of economic activity, measuring firms' assessments of current business conditions as well as their expectations for demand, sales and overall performance in the coming months.

The latest figures suggest that while Türkiye's service sector continues to show resilience and construction sentiment has edged higher, retail businesses remain cautious amid evolving consumer demand and broader economic conditions.

TurkStat publishes the confidence indices each month based on business surveys conducted across key sectors of the Turkish economy, providing an early indication of trends in economic activity. (ILKHA)