Confidence in economy improves in August

ANKARA

The economic confidence index increased by 1 percent in August from July to 94.3, the Turkish Statistical Institute (TÜİK) has said. 

Any figure above the 100-mark indicates an optimistic outlook regarding the general economic situation.

The headline confidence index was down 0.2 percent month-on-month in July. 

Consumer confidence, which increased by 7.4 percent on a monthly basis in July, advanced 6.1 percent, but businesses remained pessimistic. 

The index at 72.2 for consumer sentiment remained below the 100-mark. 

The real sector confidence index exhibited a 1.1 percent decline to 101.4 in August compared with July after registering a 2 percent month-on-month drop last month. 

TÜİK reported that confidence in the services sector fell by 1.3 percent and that followed a 1.5 decline in business morale in the sector in July.

In the retail industry, business morale declined by 0.4 percent to 112.9 in August, but the pace of decline in the sub-index eased from the 4.5 percent drop in July.

The confidence index for the construction sector increased by 1.5 percent month-on-month in August after rising 2.4 percent in July but still remained below the 100-mark. It was 86.3.

Markets and consumers will keep a close eye on the second quarter growth data, which is set to be released on Aug. 31. In the first quarter, the Turkish economy grew by 7.3 percent. Treasury and Finance Minister Nureddin Nebati recently said the growth in the second quarter probably exceeded 7.3 percent. 

Inflation data, another key numbers, which affects business and consumer sentiment, will be released on Sept. 5. Consumer prices advanced 2.37 percent in July from June. The annual inflation rate, consequently, increased from 78.6 percent in June to 79.6 percent last month.