The headline confidence index rose by 1.3% m/m in June with consumer confidence improving by 1% on the month, while confidence in the construction and services industries edging up 2.2% m/m and 1.3% m/m respectively, data from the statistics office TUIK showed on June 29.
The sub-index measuring the real sector confidence, however, fell 1.3% m/m, after remaining flat in the previous month. Confidence in the retail industry plummeted with the respective indicator dropping 4% m/m, to follow a 0.1% m/m decline in May.
The attack on Istanbul’s largest airport on June 28 by suspected Islamic State militants has once again highlighted rising security risks, suggesting violence in Syria is spilling over into the country at a time when Turkey is also stepping up fight against the Kurdistan Workers’ Party (PKK).
Still, the impact of the June 28 bombing on Turkish markets have been rather limited. The main stock exchange index fell 0.59% but the lira gained 0.17% against the dollar, supported by Ankara’s efforts to mend ties with Israel and Russia. Investors are optimistic that restoring ties with Moscow and Tel Aviv will boost Turkey’s slowing economy and provide a much needed boost to the country’s struggling tourism industry.
|Turkey's Confidence Indices|