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|
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