Consumer confidence inches up in March

ANKARA

The consumer confidence index rose from 79.3 in February to 79.4 in March as households’ expectations regarding the general economic situation and their financial situation slightly improved.

Any figure below the 100 mark indicates pessimism among consumers.

The sub-index measuring consumers’ assessment of their current financial situation declined 0.7 percent in March after dropping 0.1 percent in the previous month, data from the Turkish Statistical Institute (TÜİK) showed.

However, households became slightly more optimistic about the direction the economy will take in the coming months.

The index of consumers’ expectations regarding the general economic situation in the next 12 months, which was down 3.4 percent in February, advanced 0.4 percent month-on-month in March.

The financial situation expectation index also indicated some optimism as the indicator rose 0.9 percent after plunging 3.4 percent.

Consumers appeared to be less likely to spend money on durable goods over the next 12 months in March compared to February, according to TÜİK’s monthly consumer tendency survey.

But the index measuring the probability of making savings over the next 12 months rose 5 percent, comparing favorably with the 0.1 percent increase in February.

Last month, consumers were optimistic that prices would decline in the next 12 months. But this changed in the latest survey, apparently the increase in the annual inflation rate in February affected consumers’ perception. The annual CPI accelerated from 64.86 percent in January to 67.07 percent in February.

Consumers, however, became more optimistic compared to February that their wages would increase in the next 12 months, the survey showed.