TEPE in Decline, Expectations Deteriorate TEPE, which had been increasing since May 2011, declined in July 2011 and had a value of 0.5.

Despite the upwards movement in May and June, TEPE which tended downwards since the beginning of 2011 maintained this trend in July. One of the chief reasons for TEPE decline was the deterioration of expectations for business activities in the next three months.

TEPE, which had been increasing since May 2011, declined in July 2011 and had a value of 0.5. This implies a month-on-month decline by 2.1 points and a year-on-year increase by 4.8 points.

The equilibrium value of the expectations for the next three months decreased to 11.2 in July 2011. 39.6 percent of TEPE survey participants expect an improvement in their business activities in the next three months while 25.7 percent expect a deterioration. This implies a 11 point increase compared to July 2010 and a 4.9 point decrease compared to June 2011.

The difference between the participants who declared a year-on-year improvement in business activities and who declared a year-on-year deterioration in business activities increased by 17.5 points compared to July 2010 and decreased by 0.1 points compared to June 2011.

Concerning sub-sectors, motor vehicles demonstrated the best performance in July 2011 in comparison to the same period a year ago. Electrical appliances, radio and television sector, textile, readymade clothing and footwear sector and furniture and lighting equipment n.e.c, performed better than the average while the "others" sector performed worse than the average. Non-specialized stores, and food, beverages and tobacco products sector displayed a deterioration in their performance compared to a year ago.

Question-based examination of TEPE survey reveals that compared to July 2010, expectations for employment, orders placed with suppliers, sales and sales prices in the next three months as well as business activities in comparison with the previous year improved significantly. Compared to June 2011, however, only the expectations for employment in the next three months improved.