Turkey: Consumer confidence moderates in December
Turkish consumer confidence fell at the end of the year, as the sentiment index dropped to 58.8 in December from 59.9 in November, which has marked the highest reading since April this year. Consequently, the index remained handsomely entrenched below the 100-threshold that separates pessimism from optimism among Turkish households.
The deterioration in consumer confidence came on the back of a worsening in nearly in all subcomponents. Consumers’ views regarding the expected financial situation of households worsened, this is likely linked to the simultaneous expectation that unemployment will increase going forward: Although the Turkish economy has shown tentative signs of getting back on its feet, the recovery remains fragile. Moreover, consumers’ outlook on the general economic situation in the year ahead became more pessimistic. Furthermore, Turks’ probability to save increased somewhat despite real interest rates falling due to the strong easing cycle by the Central Bank in the second half of this year.