Turkey’s economic confidence index down 5.4% m/m in June

By bne IntelliNews June 29, 2015

The economic confidence index fell 5.4% m/m to 78.7 in June, the index’s lowest level on record, data of the statistics office TUIK showed on June 29.

The index that rose in the previous two months declined as overall business confidence, and service sector confidence deteriorated in June.

Consumer confidence increased 3.4% m/m in June after falling 1.6% m/m in the previous month, TUIK said, adding that the increase in retail industry confidence was 0.6% m/m vs 1.5% m/m rise in May. The index measuring business confidence in the construction industry rose 1.6% m/m in June after rising 2.9% m/m in the previous month.

The markets are anxiously waiting for the formation of a new government amid the June 7 elections that resulted into a hung parliament. The political parties will launch formal coalition talks after newly elected deputies elect the new speaker of parliament this week. Turkey’s business leaders urge for the quick formation of a coalition government because prolonged political uncertainty or a snap poll will hurt consumer and business sentiment.

If no coalition is formed and Turkey heads to the polls again, political uncertainty would remain heightened until the end of the year, which could potentially hamper growth if business investments are postponed, said Standard & Poor’s, the rating agency, in a note on June 18.

Turkey's Confidence Indices
  Dec Jan Feb Mar Apr May Jun
Economic 93.6 93.2 91.4 79.6 81.8 83.1 78.7
Consumer 67.7 67.7 68.1 64.4 65.4 64.3 66.4
Real Sector 108.3 106.4 104.2 101.1 102.6 103.9 101.5
Services 98.8 100.8 101.6 100.9 100.3 100.4 99.0
Retail 107.2 104.4 103.6 103.2 102.0 103.5 104.1
Construction 83.4 82.5 84.9 83.6 81.1 83.4 84.7
source: tuik

Related Articles

Turkey’s CDS at 1-month-high and lira weakest in 3 months as economic clouds gather

The cost of insuring exposure to Turkish debt grew to a one-month high on March 16 as anxieties about Turkey’s economic difficulties and the Afrin military showdown in Syria unsettled markets. ... more

Turkish bond prices fall and lira sinks as economic and political jitters grow

Turkish bond prices fell on March 13 as a growing set of economic and political anxieties left investors fretting. To add ... more

Billion-dollar petrochemical facility to be built in Turkey by Algeria's Sonatrach

Algerian national energy company Sonatrach has struck a deal with Turkey's Ronesans and Bayegan to build a petrochemical plant worth $1bn in Turkey, Turkish President Recep Tayyip Erdogan said on ... more