Turkey’s economic confidence index declined by 15.4% m/m to 71 in September. It is the biggest drop seen since November 2008.

The fall, shown by data from national statistics office TUIK released on September 27, follows the 9% m/m decline recorded in August. 

The index level of 71 is the lowest figure posted since March 2009.

The data offers more evidence that Turkey may be headed into a painful recession as its credit-fuelled expansion comes off the rails.

The 100-mark separates optimism from pessimism on the index.

September's reading meant that the index was recorded as in pessimistic territory for the sixth consecutive month since April. Prior to that phase, the index jumped by 10% m/m to 104.9 points in January. 

All the sub-indices measuring economic confidence posted sharp declines in September.

The seasonally-adjusted business confidence index declined by 6% m/m to 90.4, central bank data showed on September 24.

The seasonally-adjusted services confidence index decreased by 9.7% m/m to 79.4 following a 4.2% m/m decline in August while the retail confidence index declined by 5.2% m/m to 88.5 following a 4% m/m fall in the previous month.

The construction confidence index decreased by a sharper 16.7% m/m to 66.4 in September following a 10.7% decline a month ago.

Turkey's consumer sentiment reading saw its biggest decline in at least 14 years in September, falling 13% m/m. That is the sharpest monthly decline recorded since 2004 when the index was first compiled, and follows the 7% m/m drop posted in August.

The index figure of 59.3 registered in September was the lowest level registered since September 2015, data from TUIK released on September 20 also showed.