The economic confidence index fell 1.9% m/m in August to 84.3 after rising 6% m/m in the previous month, data of the statistics office TUIK showed on August 28.
The economic confidence index is a composite index gauging consumers’ and businesses’ assessments of the economic outlook and their expectations.
According to data of TUIK, consumer confidence index dropped 3.6% m/m in August that came on top of the 2.7% m/m decline in the sub-index in July, while the real sector confidence index fell 0.1% m/m versus 1.4% m/m increase.
Other sub-indices, namely service sector confidence, retail sector confidence, and construction sector confidence, all posted declines in the month with retail sector registering the sharpest decline of 2.6% m/m.
Turkey is headed towards fresh parliamentary elections, which according to some polling agency would produce yet another hung parliament, at a time the clashes between the security forces and PKK intensify. A dangerous combination of political uncertainty and the flare up in violence is likely to continue to hurt consumer and business confidence.
| Turkey's Confidence Indices | |||||||||
| Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | |
| Economic | 94.1 | 93.8 | 92.1 | 81.0 | 83.8 | 85.3 | 81.1 | 85.9 | 84.3 |
| Consumer | 67.7 | 67.7 | 68.1 | 64.4 | 65.4 | 64.3 | 66.4 | 64.7 | 62.4 |
| Real Sector | 108.2 | 106.4 | 104.2 | 101.2 | 102.7 | 104.0 | 101.7 | 103.1 | 103.0 |
| Services | 98.8 | 100.8 | 101.5 | 100.9 | 100.6 | 100.8 | 99.5 | 101.4 | 100.7 |
| Retail | 107.2 | 104.2 | 103.4 | 103.1 | 101.9 | 103.4 | 103.8 | 104.6 | 101.9 |
| Construction | 83.3 | 82.5 | 84.8 | 83.5 | 81.4 | 83.7 | 85.0 | 82.7 | 82.1 |
| source: tuik |
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