Turkey's economic confidence index slips 9 pct in August

ISTANBUL

The economic confidence index in Turkey decreased to 83.9 in August by a nine percent drop compared to the previous month.

The decrease in economic confidence index stemmed from the decreases in consumer, real sector, services, retail trade and construction confidence indices.

Consumer, real sector, services, retail trade and construction confidence indices decreased to 68.3, 96.3, 88, 93.4 and 68.8 in August, respectively.

The construction confidence index saw a slide of 10.7 percent during the same period. Consumer and real sector confidence indices followed with 6.5 and 5.1 percent declines respectively.

Subindexes on services and retail trade confidence declined 4.2 percent and 4 percent, respectively.

Economic confidence index is a composite index that encapsulates consumers’ and producers’ evaluations, expectations and tendencies about the general economic situation, TÜİK said.

It indicates an optimistic outlook about the general economic situation when economic confidence index is above 100, whereas it indicates a pessimistic outlook when it is below 100, it added.

The index is seen as a significant reading of the economic course as it is a composite index that aggregates sub-indices of consumer confidence, real sector services, retail trade and construction confidence indices, reflecting an overall sentiment of health of the economy.