The consumer confidence index, which had increased 2.6% m/m in November, declined 3.3% m/m to a nine-month low, in December, the statistics institute TUIK said on Thursday.
Consumers’ assessments regarding general economic outlook in the next 12-month period and regarding financial situation fell 5% m/m and 0.5% m/m, respectively, in December after rising 5.6% m/m and 0.7% m/m, respectively, a month ago. Consumers expect improvement in labour market conditions in the next 12 months.
The index measuring the probability of savings in the next 12 months dropped 0.3% m/m after declining 1.8% m/m in November. The index for probability of buying a house was down 6.2% m/m in December following a 2.3% m/m increase reported a month ago.
The index measuring the probability of buying a car in the next 12 months declined 3.4% m/m in December after it rose 0.1% m/m in November.
Last month, the banking watchdog BDDK announced that it prepared draft legislations to introduce limits on credit card installments and consumer loans. These measures may curb private spending which accounted for 68% of GDP in Q3. Households’ final consumption rose 5.1% y/y in Q3, after growing 5.6% y/y in Q2.
According to new regulations, credit card installments for electronics, jewellery, telecommunications, and car rental will be limited to six months while it will not be possible to buy food and oil products by installments. Card installments for white goods and furniture will also be limited to 12 months. Maturities of consumer loans (excluding mortgages) and car loans will be limited to 36 months and 48 months, respectively.
|Consumer Confidence Sub-Indices|
|Consumer Confidence Index||75.5||77.5||75.0|
|Financial Situation Expectation of Household||92.2||92.9||92.4|
|General Economic Situation Expectation||101.6||107.3||101.9|
|Number of People Unemployed Expectation||84.0||85.9||81.8|
|The probability of saving||24.3||23.9||23.8|
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