Consumer sentiment in Turkey recovered slightly by 0.8% m/m to 71.9 on the index after losing 1.3% in March, data from national statistics office TUIK showed on April 20.
The April data does not include consumer reaction to the early elections announcement. Markets showed a positive initial response to the snap polls surprise but the feedback from consumers will not be known until the May consumer confidence index is posted.
Given that the elections for the country’s first ever executive president and a parliament with a downsized role will take place as soon as June 24, pre-election stimuli from the government could be on the way.
Turkish voters will also go to the polls in March 2019 for the municipal elections. They are also important, especially in terms of the governance of the large cities.
In December, the consumer confidence index hit 65.1, its lowest level in 2017. But the index jumped by 11% m/m in January to 72.3, the highest level recorded since May last year. The index posted a slight decline of 0.1% m/m to 72.25 in February.
Private consumption in Turkey rose by 6.1% y/y in 2017, higher than the 3.7% recorded in 2016, according to the latest GDP data.
Fears that Turkey’s economy is overheating intensified on March 29 as Q4 GDP growth for last year came in at 7.3% y/y with the full-year 2017 expansion given as 7.4% after 3Q GDP was revised up 0.2pp to 11.3%.