The economic confidence index rose for a second straight month in May, data of the statistics office TUIK showed on May 27.
The headline index increased 1.5% m/m in May after rising 3.6% m/m in the previous month and posting a 13.9% m/m decline in March.
The rise in overall economic sentiment in May was driven by the improvements in real sector (manufacturing), services sector, retail industry and construction sector confidence. The real sector confidence sub-index was up 1.2% m/m, services sector confidence rose 0.1% m/m, retail industry confidence increased 1.4% m/m, and construction sector confidence rose 2.9% m/m in May.
However, TUIK reported a 1.6% m/m decline in consumer confidence which rose 1.5% m/m in April.
The rise in economic sentiment in May is rather surprising as the country is heading for elections in June. The AKP is expected to win the upcoming elections, but recent surveys conducted by pollsters Konda and Sonar suggest that support for the ruling party is waning. Konda estimated support for the AKP at 40.5% while Sonar put AKP support at 41%. Hakan Bayrakci from Sonar argues that if the AKP gets 41% of the votes it would not be able to form a single-party government.
| Turkey's Confidence Indices | ||||||
| Dec | Jan | Feb | Mar | Apr | May | |
| Economic | 92.6 | 92.8 | 90.8 | 78.2 | 81.0 | 82.2 |
| Consumer | 67.7 | 67.7 | 68.1 | 64.4 | 65.4 | 64.3 |
| Real Sector | 108.2 | 106.4 | 104.2 | 101.2 | 102.7 | 103.9 |
| Services | 98.8 | 101.1 | 101.9 | 101.1 | 100.6 | 100.7 |
| Retail | 107.2 | 104.3 | 103.5 | 103.0 | 101.8 | 103.3 |
| Construction | 83.4 | 82.5 | 84.9 | 83.5 | 81.0 | 83.4 |
| source: tuik | ||||||
Related Articles
Fintech Freedom Holding aims to make France key entry point into EU with €500mn investment
A French banking licence would open the way to a new phase in the international expansion of Nasdaq-listed fintech group Freedom Holding Corp. That’s the expectation of Freedom, a company ... more
Iran's Araghchi arrives in Turkey for talks on US military build-up as Ankara looks to act as mediator
Iranian Foreign Minister Abbas Araghchi arrived in Istanbul on January 30 for meetings with Turkish officials to discuss regional issues amid what he described as serious challenges posed by US ... more
TPAO and ExxonMobil sign deal for offshore exploration
The Turkish Petroleum Corp. (TPAO) has formalised a strategic partnership with Esso Exploration International, a subsidiary of ExxonMobil, marking a significant escalation in Türkiye’s ambitions ... more