Turkey’s Consumer Confidence Slips in December 2025

Turkey’s consumer sentiment weakened further at the end of 2025, signaling growing caution among households about both their personal finances and the broader economic outlook. According to data released by the Turkish Statistical Institute (TÜİK), the Consumer Confidence Index declined in December, reinforcing concerns that optimism has yet to return despite expectations typically associated with the new year.

Based on the official figures, the index, which stood at 85 points in November, fell by 1.8% in December to 83.5 points. The decline highlights a noticeable deterioration in household expectations, suggesting that consumers are entering 2026 with a more pessimistic view of future economic conditions.

Consumer Confidence Remains Well Below the Optimism Threshold

The Consumer Confidence Index is derived from the consumer tendency survey, which measures households’ assessments of their current financial situation, expectations for the coming year, perceptions of the general economy, and willingness to make major purchases. A reading below 100 is widely interpreted as pessimism, while values above 100 reflect optimism.

As of December 2025, the index not only remained below this critical threshold but also showed a broad-based decline across all sub-components. This pattern suggests that consumer caution is not limited to a single area, but instead reflects a generalized sense of uncertainty.

The continued weakness of the index underscores that households do not yet anticipate a meaningful improvement in economic conditions, even as the year draws to a close.

Households Feel Financially Weaker in the Present

One of the most pronounced declines was observed in households’ current financial situation. This sub-index fell from 69.6 in November to 67.9 in December, marking a 2.4% decrease every month.

This drop indicates that households are increasingly feeling strained under current economic conditions. Rising living costs, pressure on disposable income, and uncertainty around future expenses appear to be weighing heavily on perceptions of financial well-being. The fact that this indicator is significantly below 100 highlights that a large share of consumers view their current situation as unfavorable.

Expectations for the Next 12 Months Also Deteriorate

Looking ahead, households expressed slightly weaker expectations regarding their financial outlook over the next year. The index measuring expectations for household financial conditions over the next 12 months declined by 0.6%, falling to 85.2 points in December.

Although the decrease is more modest than for other components, it still suggests limited confidence in near-term income growth or financial relief. Consumers appear unconvinced that their personal economic situation will improve significantly over the coming year, reinforcing the overall tone of caution.

Economic Outlook Turns More Gloomy

Perceptions of the broader economy also worsened in December. The general economic outlook index, which reflects expectations for Turkey’s overall financial performance in the next 12 months, fell by 1.8% to 78.2 points.

This decline suggests that consumers are increasingly skeptical about prospects for a macroeconomic recovery. Concerns about inflation, employment, growth, and financial stability likely shape these expectations. With the index remaining well below 100, households do not foresee a great or rapid improvement in the national economy.

Taken together, the data indicate that consumers are not only worried about their own finances but also doubtful about the country’s economic trajectory.

Willingness to Spend on Durable Goods Weakens

Another key signal of consumer sentiment comes from the index measuring intentions to purchase durable consumer goods, such as home appliances, furniture, and electronic products. In December, this indicator dropped by 2.3 percentage points, from 105 to 102.6.

Although this sub-index remains above the 100 threshold, the decline suggests a cooling in spending enthusiasm. Durable goods purchases are often postponed during periods of uncertainty, as households prioritize essential spending and liquidity over large, discretionary outlays.

The decrease suggests consumers are becoming more cautious about major purchases, a trend that could affect domestic demand and sectors reliant on consumer spending.

What December Data Signals for the Economy

The December 2025 Consumer Confidence Index paints a clear picture of widespread pessimism among Turkish households. With all major sub-indices remaining below 100, the data suggest that consumers are entering the new year without strong expectations of economic improvement.

Consumer confidence is closely linked to spending behavior, savings decisions, and overall economic momentum. Prolonged weakness in sentiment can translate into softer consumption, slower growth, and increased pressure on sectors dependent on domestic demand.

While confidence indicators can fluctuate from month to month, the consistent sub-100 readings underline a structural challenge rather than a temporary dip. Unless households begin to see tangible improvements in income stability, inflation dynamics, or broader economic conditions, sentiment is likely to remain fragile.

As policymakers, businesses, and investors look toward 2026, consumer confidence data will remain a key barometer of economic expectations. For now, the December figures suggest that optimism remains elusive, and households are approaching the new year with caution rather than confidence.