Turkish consumer confidence weakens in November

Along with all the volatility in TL and the rising interest rates, Turkish consumer confidence fell to 80.1 in November from 81.9 points in October based on the deteriorating outlook on household finances and the economy. 

The spike in COVID-19 infections and the new curfew measures also threaten the consumers about loss of income for the months ahead. 

Confidence among householders for their financial situation compared to the last 12 months dropped to 66.6 points from 69.4 points in October.  The financial situation expectation of household index in the next 12 months period which was 79.5 in October decreased by 0.6% and became 79.0 in November.

Expectations for the general economic situation over the next 12 months eased to 78.7 points in November from 81.4 points the previous month. A gauge for spending over next 12 months compared to the past 12 months period on durable goods also declined from 97.4 in October to 96.2 in November.

The tighter monetary policy and hopefully relatively more stable TL can only slightly improve consumer consumer in the months head.  The rates seem designated to remain higher and economic conditions to get rougher in the absence of state support on COVID-19 related partial lockdowns.