Turkey: Consumer confidence drops again in July
Sentiment among Turkish consumers dropped to a near-record low in July, with the consumer confidence index falling from 57.6 in June to 56.5; this marked the second lowest reading since the survey began in 2004. As a result, the index moved further south of the neutral 100-point mark and remained deeply entrenched in pessimistic territory.
The most recent downtick in the index was driven by a broad-based deterioration. Consumers’ views on their financial situation turned more pessimistic amid a bleaker outlook on the general economic situation in Turkey and the labor market. Turks’ assessment of their probability of saving consequently worsened. The Turkish economy exited recession in the first quarter of this year; however, the economy contracted again in year-on-year terms. Moreover, the economy is not expected to rebound until the final stages of this year.