Turkey’s consumer confidence index reaches 7-month high

Türkiye’s consumer confidence index in January reached its highest level of the past seven months, according to official data on Tuesday.

The index climbed 3.9% month-over-month to 80.4 points, from 77.4 in December, the Turkish Statistical Institute (TurkStat) revealed.

The reading marked the highest level since June 2023.

All sub-indexes posted increases in January, with the financial situation of households gaining the most with 6% compared to December, according to the data.

The financial situation expectation of households over the next 12 months increased by 4.5%, and the assessment on spending money on durable goods over the next 12 months rose by 3.6%.

The general economic situation expectation over the next 12 months increased by 1.8% month-over-month.

Calculated from the monthly survey, results are evaluated within a range of 0-200. Sectoral confidence indexes above 100 signal an optimistic outlook, and a pessimistic outlook when below 100.

Preliminary surveys showed a decline in consumers’ perception of the current situation and expectations for the future, driven by the decline in consumption trends after the New Year due to geopolitical tensions, the stress in financial markets, downward movements in growth expectations, and seasonal effects.