Turkish consumer confidence index slips in November
ANKARA
The consumer confidence index declined to 68.9 in November, a 6.9 percent decrease compared to the previous month, data from the Turkish Statistics Institute showed on Nov. 22. The index, which is calculated by TÜİK and the Central Bank, saw a dramatic rise in November 2015 following the parliamentary elections, surging to 77.1 with an increase of around 23 percent year-on-year. However, it has been declining since then.
“Some deterioration in financial indicators, especially the weakening trend in the Turkish Lira, has had an impact on the index. The more the loss in the lira is reflected in prices, the more the index will likely decline,” said Finansbank economist Deniz Çiçek, as quoted by Reuters.
“The index was resilient compared to other preliminary indicators in the last months. After it increased 11 percent in August compared to the previous month, it remained even in the following two months, when loan growth and industrial production slowed down. The index saw some adjustment in this sense,” Çiçek added.
The probability of saving was down significantly, down from 23.27 in October to 20.33 in November, suggesting that more people feel pessimistic about being able to save money in the coming months. The unemployment expectations index, which shows general sentiment about the health of the labor market, also saw a decline of 7.6 percent from the previous month to 71.3 points.
The financial situation expectation of household index decreased by 5.4 percent compared to the previous month, becoming 89.01 in November.
The general economic situation expectations index also fell 6.5 percent from the previous month to 95.06 points.
The consumer confidence index indicates an optimistic outlook when the index is above 100 and a pessimistic outlook when it is below 100.
“Some deterioration in financial indicators, especially the weakening trend in the Turkish Lira, has had an impact on the index. The more the loss in the lira is reflected in prices, the more the index will likely decline,” said Finansbank economist Deniz Çiçek, as quoted by Reuters.
“The index was resilient compared to other preliminary indicators in the last months. After it increased 11 percent in August compared to the previous month, it remained even in the following two months, when loan growth and industrial production slowed down. The index saw some adjustment in this sense,” Çiçek added.
The probability of saving was down significantly, down from 23.27 in October to 20.33 in November, suggesting that more people feel pessimistic about being able to save money in the coming months. The unemployment expectations index, which shows general sentiment about the health of the labor market, also saw a decline of 7.6 percent from the previous month to 71.3 points.
The financial situation expectation of household index decreased by 5.4 percent compared to the previous month, becoming 89.01 in November.
The general economic situation expectations index also fell 6.5 percent from the previous month to 95.06 points.
The consumer confidence index indicates an optimistic outlook when the index is above 100 and a pessimistic outlook when it is below 100.
