According to TUIK’s figures, the economic confidence index, which was at 99.3 in July, fell by 5.2% in August, reaching 94.1. This drop is the lowest in the span of a year and is also the steepest decrease observed since the onset of the global pandemic.
Delving into the specifics across various sectors, the consumer confidence index faced a notable decline of 15.1%, dropping to a value of 68. Meanwhile, the confidence index for the real sector, which encompasses the manufacturing industry, reported a marginal dip of 0.3% to arrive at 104.6. The services sector saw its confidence index decrease by 1.7%, reaching 115.3. On a similar note, the retail trade sector’s confidence index edged down by 0.4%, coming in at 114.3, while the construction sector marked a 0.7% fall, standing at 87.4.
The economic confidence index is an essential indicator for gauging the country’s economic sentiment. A value greater than 100 reflects optimism regarding the overall economic situation, while a value below 100 indicates pessimism. The latest figures for August, unfortunately, seem to suggest a growing pessimism about Turkey’s economic outlook, casting a shadow on the upcoming fiscal projections.
Gercek News, TUİK