Consumer confidence jumps in Turkey after election

ANKARA

The consumer confidence index increased in November 2015 to its highest level since April 2014, with a 22.9 point rise from last month, data from the Turkish Statistical Institute (TÜİK) revealed on Nov. 20.

Consumer confidence jumped to 77.15 points in November from 62.78 points in October, according to TÜİK data prepared in cooperation with the Central Bank. 

The main reason behind the dramatic increase is the rise in consumers’ positive expectations about the general economic outlook after the Justice and Development Party (AKP) regained its parliamentary majority in the Nov. 1 general election, according to analysts.

“This put an end to a long period of political uncertainty and consumers are reacting to the increased stability,” commented Attila Yeşilada, an economist with Global Sourced Partners in London, as quoted by Anadolu Agency. 

“We believe the main reason in the sharp rise is a boost in people’s positive feelings about the future of the general economic outlook. Some recovery in the political outlook after the election also played a role in rebounding consumer confidence, which had been falling for 1.5 years and is now rapidly recovering,” said Garanti Investment Chief Economist Gizem Öztok Altınsaç, as quoted by Reuters. 

The consumer confidence index regressed to the lowest level since January 2009 in September 2015. 
The sub-indexes also showed a surge in consumer confidence in November. 

The General Economic Expectation index, which tracks consumer confidence in the economy, rose by 30.9 points to 105.9 points.

The Financial Expectation index, which surveys households on confidence in their financial future, saw a 10.5-point improvement to 95.66 points.