Turkey’s Consumer Confidence Drops in January, Signaling Cooling Domestic Demand

Bloomberg HT Consumer Confidence Index decreased by 6.99 percent in January compared to the previous month, returning from its peak of 72.55 and showing the first decline since August.

 

Looking at the details of the index, a decline was observed in the consumer’s perception of the current situation, expectations for the next 12 months, and consumption tendency.

It was observed that the main reason for the decline was the decrease in consumption tendency due to seasonal factors and price increases. Geopolitical and political uncertainties, which tend to increase partially, also seem to be other important reasons for the decline.

In this context, the Bloomberg HT Consumer Expectations Index decreased by 5.80 percent compared to the previous month and reached 71.28. On the other hand, the Bloomberg HT Consumption Tendency Index, which tries to measure the suitability of the current period for purchasing durable consumer goods, automobiles, and housing, fell sharply by 22.98 percent to 67.24.

The data signal a cooling in domestic demand after last year’s last quarter. For a clear interpretation, it is necessary to watch for a few months whether this trend will continue or not.

 

 

 

Source: Bloomberght.com

Translation: Cem Cetinguc