Turkey’s economic confidence index decreases by 5.4 percent

ISTANBUL - Doğan News Agency

Grand Bazaar

Economic confidence index fell by 5.4 percent to 78.66 in June, down from 83.12 in May, with confidence dropping in both the manufacturing and services sectors, according to Economic Confidence Index data released by the Turkish Statistics Institute (TÜİK) on June 29.

The index indicates an optimistic outlook about the general economic situation if it is above 100, while a figure below 100 indicates a pessimistic outlook.

The real sector confidence index decreased by 2.3 percent to 101.50 in June, down from 103.90 in May, while the services confidence index fell by 1.4 percent to 99.04.

However, the consumer confidence index rose by 3.4 percent to 66.45 in June, from 64.29 in May, while the retail trade confidence index rose by 0.6 percent to 104.12. The construction confidence index rose by 1.6 percent to 84.73 over the same period.

The Economic Confidence Index is a composite index that includes evaluations from consumers and producers about their expectations for the general economic situation.

In the calculation of the index, sectoral weights are not directly applied to the five confidence indicators themselves but to their normalized individual sub-indices. The point of normalization is to make variables comparable to each other.

Consumer confidence index as one of the composing indicators of economic confidence index is calculated from Consumer Tendency Survey results, which are conducted with the cooperation of TÜİK and the Central Bank of Turkey. The real sector confidence index is calculated by the Central Bank of Turkey while the services, retail trade and construction confidence indices are calculated by TÜİK.