Consumer confidence drops in April, Ipsos finds wide-spread economic anxiety

Turkey’s private sector consumer confidence gauge, compiled by financial broadcaster BloombergHT decline further in April, as a national poll by Ipsos agency for daily newspaper Milliyet found wide-spread economic anxiety replacing fears of the Covid epidemic.

According to the press release by Bloomberg HT, its April  Consumer Confidence Index for April 2020 displays a fall of 7.93 per cent for the consumer sentiment with an index value of 65.10.  100 is the demarcation line between “optimism” and pessimism”

In April, both the current perceptions of households and expectations for the future in general and tendency to consumption are displaying a deterioration compared to the end of March stance. It seems that the main factor behind the deterioration is coronavirus pandemic. In this respect, Bloomberg HT Consumer Expectations Index fall by 1.98 percent compared to end of March as of the index number 73.15.  Bloomberg HT Consumption Tendency Index which tries to measure consumers’ stance on whether the current period is the right time to buy durable goods, autos and real estate is experiencing a fall of 21.18 percent to the value of 47.18.

The rate of fall at index figures decelerated compared to preliminary index. Near future path of index seems to be determined by the dynamics of coronavirus pandemic to a great extent.

Ipsos agency finds that those are still “fearful” of corona fell from %65 to 49% over a month, but participants increased their forecast regarding the impact of the epidemic from “a few months” to at least 6. Sixty-eight percent of participants expect “significant changes” in their lives post-Covid-19. However, a walloping 90% are now concerned about their economic prospects.

Both surveys find low desire to spend, which means even if the production side of the economy returns to normal, a domestic demand gap will continue to keep economic activity depressed.

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