Confidence in economy improves in May

ANKARA

The economic confidence index gained 2.1 percent in May from April to stand at 96.7, the Turkish Statistical Institute (TÜİK) said on May 26.

Any index figure above the 100-threshold indicates optimism.

The index declined for three consecutive months between February and April.

TÜİK data showed that consumer confidence, which plunged 7.3 percent in April month-on-month, inched up 0.4 percent in May. The increase in the sub-index stemmed mainly from the improvement in consumers’ expectations regarding households’ financial situation in the next 12 months.

Deterioration in business morale, however, continued for the fourth month in a row. The real sector confidence index fell by 0.7 percent in May, after dropping 0.5 percent in April, to 107, but still remained above the 100-mark.

The confidence index for the services sector, which climbed 3 percent last month, rose by another 6.1 percent on a monthly basis.

Confidence in the retail industry declined slightly in May from April. The confidence index for the sector increased by 1.7 percent, which marked a smaller gain compared to the 2.8 percent rise recorded in April.

TÜİK also reported that the confidence index for the construction sector fell 2.2 percent in May, after rising 3 percent in April.