Turkish economic confidence rebounds in September

By bne IntelliNews September 29, 2016

Confidence in Turkey’s economy recovered strongly in September, despite economic and political challenges, data from statistics office TUIK showed on September 29.

The economic confidence index jumped 21% m/m to 87.8 points in September, swinging from a 24.1% m/m decline in August, when sentiment worsened in the wake of the failed July 15 coup attempt. The improvement in September was driven by a recovery in the real sector confidence that rose 4% m/m in September, versus 3.1% m/m decline in the previous month.

Confidence in the services and construction sectors were up 5.7% m/m and 3.2% m/m, respectively, but business sentiment in the retail industry continued to decline, falling for the second month in a row.

TUIK also reported that consumer confidence, one of the major components of the headline economic sentiment index, fell 0.2% m/m in September. That followed a 11% m/m increase in August.

TUIK’s monthly economic sentiment survey was carried out before Moody’s downgrade that sent Turkey’s rating into junk. However, Turkey’s markets are weathering the fall-out from the rating move. The volatility, triggered by the rating cut, was short-lived. Stocks recovered and the lira reversed some of its earlier losses.

The main stock exchange index, BIST-100, opened 0.03% higher but the lira weakened 0.03% to trade at 2.9880 per dollar as of 10:15am local time.

Senior government officials have lashed out at Moody’s for poor judgment, arguing that the fundamentals of the economy are still strong, even though they admit that the government’s 4.5% GDP growth target for 2016 will likely be missed. The government announced a set of measures to boost economy activity that showed signs of further weakening in the wake of the coup attempt.

Turkey's Confidence Indices
  Dec-14 Oct Nov Dec-15 Jan Feb Mar Apr May Jun Jul Aug Sep
Economic 94.9 82.6 104.8 100.8 83.9 71.5 78.3 73.5 82.3 83.3 95.7 72.7 87.8
Consumer 67.7 62.8 77.1 73.6 71.6 66.6 67.0 68.5 68.8 69.4 67.0 74.4 74.3
Real Sector 108.0 103.6 110.2 108.8 105.9 105.2 104.1 105.7 105.7 104.3 106.3 103.0 107.1
Services 98.8 98.2 100.0 99.0 92.5 89.2 93.5 89.9 94.5 95.8 100.9 91.1 96.2
Retail 105.4 100.8 105.4 104.9 108.8 106.2 110.5 104.0 103.8 99.7 103.6 101.2 98.0
Construction 82.7 80.5 84.5 85.1 83.9 82.8 81.4 81.5 79.2 80.9 83.0 79.4 82.0
source: tuik  

Related Articles

Turkey postpones plan to sell firms seized after coup attempt

Turkey has put on hold its plan to sell almost 600 companies worth about $10bn seized in the aftermath of the failed military coup, people familiar with the matter told Bloomberg on March 23. The ... more

Turkey to maintain EU economic relations but review political ties, says Erdogan

Turkey will maintain its commercial ties with the European Union but will review its political and administrative ties with the bloc after the April 16 referendum, Turkish President Recep Tayyip ... more

Turkey easily tops table for Twitter content removal requests

Turkey accounted for more than half of all content removal requests received worldwide by Twitter during the second half of 2016, according to the social media company’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss