Retail sales slow, turnover in economy increases 41 percent

ISTANBUL

Retail sales increased by 13.5 percent annually in December, while turnover in key industries rose more than 41 percent year-on-year, according to data from the Turkish Statistical Institute (TÜİK) on Feb. 11.

The annual growth in retail sales, however, slowed from 16.6 percent in November.

Sales of food, beverages, and tobacco climbed 12.7 percent year-on-year and the month-on-month increase was 1.1 percent in December, quickening from a 0.6 percent rise recorded in the previous month.

Sales of non-food items were up 16.8 percent annually and 0.2 percent monthly, while automotive fuel sales saw a 3 percent decline from December last year.

Computer, books and telecommunication equipment sales surged 32.8 percent year-on-year but fell 0.4 percent month-on-month, according to TÜİK data.

The annual increase in textile and clothing sales was 3.2 percent, while mail and online orders showed an annual increase of 8.8 percent.

The trade sales volume index increased by 8.2 percent year-on-year, after advancing 8.7 percent in November, TÜİK also said.

Private consumption is one of the main drivers of economic growth.

The latest growth data showed that the share of final consumption of households accounted for 59.3 percent of GDP in the third quarter of 2024, when households’ consumption rose 3.1 percent annually and the country’s economy expanded by 2.1 percent year-on-year.

TÜİK reported last month that consumer confidence declined 0.4 percent month-on-month in January to 81 after advancing 1.9 percent in December.

The index indicates an optimistic outlook when it is above the 100-mark, but it indicates a pessimistic outlook when it is below 100.

TÜİK separately reported that the combined turnover of the industry, construction, trade and services sectors surged 41.3 percent in December 2024 from the same month of the previous year.

The annual increase in total turnover also slowed from the 42.5 percent rise in November.

Total turnover in those four key industries was up 5.1 percent month-on-month, gathering pace compared to the 2.7 percent increase in November.

In industry, revenue rose by 32.8 percent year-on-year, while the annual increases for the construction and trade sectors were 49.3 percent and 41.9 percent, respectively.

In the services sector, the year-on-year turnover increase was 49.7 percent. The year-on-year rise in turnover in transportation and stores was 42.4 percent.

Turnover in the accommodation and food services sector rose by 57.8 percent, while it was 58 percent for the information and communication sector.