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

Lira rises to over two-week high as Turks follow Erdogan’s call

The Turkish lira strengthened to over a two-week high against the dollar on December 7 as ordinary Turks and state institutions followed President Recep Tayyip Erdogan's call to shore up the ... more

Turkish lira hits new record low as Erdogan renews calls for lower interest rates

The Turkish lira hit fresh lows against the dollar on December 2 as President Recep Tayyip Erdogan renewed calls for lower borrowing costs. Erdogan, once declared himself as the enemy of ... more

Fitch latest to cut Turkey’s growth forecasts

Turkey’s economic growth is expected to sharply weaken to 2.9% this year from 4% in 2015 as uncertainties generated by the July coup attempt and the government’s response continue to put pressure ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

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

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have 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.

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

IntelliNews Pro subscribers click here

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.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The 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