Consumer confidence index at lowest since global crisis

Consumer confidence index at lowest since global crisis

Consumer confidence index at lowest since global crisis

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The consumer confidence index in Turkey dropped to 58.52 in September, its lowest value since January 2009, the period when the global financial crisis had the greatest impact, amid political uncertainties, market fluctuations and security concerns. 

According to the index released by the Turkish Statistics Institute (TÜİK) in cooperation with the Turkish Central Bank on Sept. 21, the consumer confidence index was at 62.35, in August. The index fell by 6.1 percent in September against the previous month. 

Consumer confidence thus fell to its lowest value since January 2009, when the rate had been 58.3.

“The declining trend in the consumer confidence index continues in September as the country is heading to another election period and terrorist attacks are seen. With concerns over the expected rate hike by the U.S.

Federal Reserve [Fed] and fluctuations in global markets, we have seen a dramatic loss in the Turkish Lira’s value,” said Oyak Yatırım chief economist Mehmet Besimoğlu, as quoted by Reuters. 

The consumer confidence index indicates an optimistic outlook when the index is above 100 and a pessimistic outlook when it is below 100.

The general economic situation expectation index dropped to 72.04 in September from 77.60 in August.

Similarly, the index measuring households’ financial expectations over the next twelve months worsened to 82.08 from 86.17.

The number of unemployed people expectation index decreased by 2.6 percent to 61.86 in September from 63.48 in the preceding month. The probability of saving index, which indicates the possibility of consumers saving in the next 12 months, came in at 18.11 in September, down from 22.16 a month ago.