TL weakness pulls down Tukey’s Consumer Confidence Index to all time low

Seasonally-adjusted consumer confidence index (CCI) in Turkey worsened to 71.1 in November from 76.8 the previous month sliding by 7.3% in a month’s time, according to the Turkish Statistical Institute. 

November 2021 consumer confidence index at 71.1 is the lowest level since the data series began in 2004. 

Seasonally adjusted consumer confidence index, November 2021

The Index had peaked back in March 2021 at 86.7 when TL/dollar was stronger at 6.8 following the rate hikes during Agbal’s central bank term.  Later on the change of post to Kavcioglu and the rate cuts delivered since September carrying the real rates to negative resulted with almost 30% loss of value for TL against the USD.  Hence the CPI to 20%. 

The decline in consumer confidence was led by a deterioration in the outlook for household finances over the next 12 months, which declined to 68.9 from 75.6. Consumers’ expectations for the general economic situation in the country dropped to 68.2 from 74.2.

The results of the CCI confirm with polling company Metropoll’s latest results released over the weekend that almost two-thirds of Turks have no faith in the government finding solutions to the country’s economic problems.