Trust in the Turkish Economy Hits an 8-Month High
The Turkish Statistical Institute (TÜİK) has published the Economic Confidence Index report for December. According to the report, the economic confidence index reached a value of 98.8 in December, marking the highest level in the last eight months.
In December, the economic confidence index recorded an increase of 1.8% compared to November, reaching 98.8. Although this increase does not reflect an optimistic trend regarding the overall economic situation, it indicates a sign of recovery in the confidence index compared to the previous month. The index remaining below 100 suggests that there is still some unease regarding the overall economic situation.
Divergences in sectoral confidence indices were observed. The report published by TÜİK noted that sectoral confidence indices changed at different rates. In December, the consumer confidence index rose by 1.9%, reaching a value of 81.3. This increase indicates that consumers have a more positive expectation regarding the economic situation.
On the other hand, the real sector (manufacturing industry) confidence index decreased by 0.7%, dropping to 102.7. This decline in the real sector index is seen as a sign that some uncertainties and challenges in the manufacturing industry persist.
Increases were observed in the services and retail trade sectors. The services sector confidence index increased by 2.4% in December, reaching a value of 113.6. This increase shows that businesses operating in the services sector have more positive expectations for the future. The positive outlook in the services sector indicates that signs of growth and recovery are continuing.
The retail trade sector confidence index also rose by 1.2% in December, climbing to a value of 113.0. This increase in the retail trade sector index is seen as an indicator of the rise in consumer spending and activity in the sector, creating optimism for businesses operating in retail trade.
A limited increase was observed in the construction sector. The construction sector confidence index rose by 1.9%, reaching a level of 89.4 in December. Despite this increase, the index remaining below 100 indicates that uncertainties and challenges in the sector have not been fully overcome and that there is still some pessimism. The construction sector's index being below 100 signifies that some structural issues in the sector continue to persist.
In conclusion, although the general upward trend in the economic confidence index displayed sectoral differences in December, it offers promising clues about the future trajectory of the overall economic situation. While the index remaining below 100 does not alleviate concerns, the increases observed on a sectoral basis indicate a partial improvement in the economic outlook.