TEPE which was in the negatives in August and September stood slightly above zero in October albeit maintaining the movement along the horizontal axis.

TEPE which had been in the negatives in August and September reached to a positive by October. The index had a value similar to that achieved in October 2010. An improvement in sales volume and sales prices are expected in the next three months. The gap between TEPE and EU-27 Retail Index reached a new record-high.

TEPE, which had stood in the negatives for the first time since October 2010 in August and September 2011, reached the positives with 0.2 in October. This implies a month-on-month increase by 1.1 points and a year-on-year decrease by 02. points.

The balance value of the expectations for the next three months stood at 12.9 in October 2011. 35.1 percent of TEPE survey participants expect an improvement in their business activities in the next three months while 30.7 percent expect a deterioration. This implies a 6.2-point increase compared to October 2010 and a 6.5 point increase compared to September 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 0.3 points compared to October 2010 and decreased by 5.8 points compared to September 2011.

EU-27 Retail Confidence Index stood at -12.4 in October 2011, implying a 0.8-point month-on-month increase and a 15.6-point year-on-year decrease. This furthered the gap between TEPE and EU-27 Index to a record-high since May 2008, when the TEPE was first conducted.

Concerning sub-sectors, electrical appliances, radio and television sector demonstrated the best performance in October 2011 compared to the same period last year. This was followed by non-specialized stores and others sector. Textiles, ready-made clothing and footwear sector, furniture and lighting equipment sector, and motor vehicles could not catch the previous year’s performance and stood below the sector averages. Food, beverages and tobacco products sector demonstrated the largest year-on-year decline in performance.

Question-based examination of TEPE survey results reveals that compared to October 2010, expectations for the sales volume and sales prices in the next three months and the current level of inventories increased. Employment expectations for the next three months decreased. Compared to September 2011, business activities compared to the past three months, expectations for the orders to be placed with suppliers in the next three months and the level of business activities compared to the previous year decreased. The expectation for a rise in sales prices in the next three months might have an effect on inflation.