Turkish economic confidence hits four-month low
The Economic Confidence Index in Turkey, a crucial gauge of sentiment among consumers and producers, fell below the crucial threshold of 100, signaling increasing concerns about the state of the nation's economy.
According to the data released by the Turkish Statistical Institute (TUIK), the index dropped to 99.3 in July, down by 1.8% from the previous month's value of 101.1.
Moreover, other key sectors such as consumer, manufacturing, service, retail, and construction also witnessed significant decreases, painting a worrisome economic picture for the near future.
All sub-indices experienced a decline in July as economic confidence slipped below the threshold value.
Compared to the previous month, the consumer confidence index dropped by 5.9% in July, settling at 80.1. The real sector (manufacturing industry) confidence index decreased by 0.8%, reaching 104.9. Meanwhile, the service sector confidence index fell by 0.6% to 117.3, and the retail trade sector confidence index declined by 2.6% to 114.7. Additionally, the construction sector confidence index experienced a 0.9% decrease, reaching 88.1.
The Economic Confidence Index is a composite index summarizing the assessment, expectations, and tendencies of consumers and producers regarding the overall economic situation. The index is calculated by weighting the sub-indices of consumer confidence, seasonally adjusted real sector (manufacturing), services, retail trade, and construction sector confidence.
When the Economic Confidence Index is above 100, it indicates optimism regarding the general economic situation, whereas a value below 100 indicates pessimism.