The consumer confidence index declined 1.6% m/m to 77 in August after picking up 2.9% m/m in the previous month, data of the statistics institute (TUIK) showed on Wednesday.

Uncertainties in the global economy have hit the Turkish consumer confidence. In the weeks ahead, the Syrian conflict, if it gets worse and more complicated after a possible US-led military intervention, may have negative impact on the sentiment.

The military strikes on Syria may trigger a further rise in already high oil prices which does not bode well for the inflation outlook and consumer sentiment.

Concerns over a possible US action against Syria already slammed the Turkish markets and hit the country’s local currency which weakened a record low against USD this week.

Households’ expectations of general economic outlook and financial situation over the next 12 months posted 2% m/m and 1.3% m/m declines respectively.

The probability of savings over next 12 months and probability of buying a home were down 10.4% m/m and 14.8% m/m, data also showed.

The index assessing the probability of buying a car over the next 12 months fell 0.8% m/m in August after posting a 0.1% m/m increase in the previous month.

The index measuring probability of buying durable consumer goods was also down 1.6% m/m after the index rose 0.9% in July and 1% in June.

Taken together with the results of the Central Bank’s business tendency survey, the consumer confidence data confirm that there is no sign of significant acceleration in economic activity.

The business confidence index, a measure of sentiment in the business sector, declined for a third consecutive month in August, data by the Central Bank showed earlier this week.

The business sentiment index fell to 107.5 in August from 108.7 in July.  The index figure was 112.5 in May and 111.8 in June.