Expectations play a crucial role in the improvement.

TEPE which tended downwards over the last two months started to increase again as of July 2010. The Index improved by 6.2 points compared to the month before and by 4.3 points compared to the same month in the year before. The recovery in expectations played a crucial role in the improvement.

In July 2010 expectations for the next three months ameliorated achieving the positive zone. 36.3 percent of TEPE participants expect an improvement in their business activities over the next three months whereas 33.3 percent expect deterioration in business activities. This implies an improvement by 18.1 points compared to June 2010 and by 6.2 points compared to July 2009.

TEPE surpassed the EU-27 average for the first time since October 2009. EU-27 average which stood 4.5 points above TEPE in June 2010 fell below TEPE by 0.2 points in July 2010. The average for the Eurozone varies 3.4 points below the EU-27 average.

Considering the performance of sub-sectors, it is seen that in July 2010 non-specialized stores; food, beverages and tobacco products; other; and textiles and ready-made clothing sectors demonstrated a better performance. On the other hand, survey results reveal that electrical household appliances and motor vehicles sectors recorded decreases by 8.5 and 11.5 points, respectively.

The improvements in expectations and the increases in the orders placed with suppliers were striking in July 2010. The recovery in expectations for employment taking place since June 2010 continues.