Consumer confidence recovers from four-year low

Consumer optimism in Turkey has grown in March despite analysts’ escalating concern over the course of macroeconomic data in the rest of year, official data has shown.

The consumer confidence index rose to 72.7 points in March, from 69.2 in February, marking a 5 percent increase on a monthly basis, the Turkish Statistical Institute (TÜİK) reported on March 28.

The index had hit its lowest level of four years in February, as rising political concerns and tighter monetary policies took their toll on expectations.

The index shows that confidence in the general economy for the next 12 months has increased by 6.1 percent to 95.9 points in March, from 90.4 points in February.

The financial expectation for household income in the next 12 months, meanwhile, rose to become 91.4 points after an increase of 2.9 percent compared to the previous month.

The probability of savings index for the next 12 months also increased by 9.6 percent in March, compared to the previous month, and rose from 22 in February to 24.1 in March.

However, the expectation for the number of unemployed people index also surged to 79.5 in March, with an increase of 4.9 percent from February, signaling a gloomier view of the labor market.

The indices range between 0 and 200 points, with 100 points being a neutral outlook, above that point being optimistic and below being a pessimistic outlook.