(MENAFN) Economic morale in Türkiye experienced a further decline in June compared to the previous month, as indicated by the latest official data released on Thursday. The Turkish Statistical Institute (TurkStat) reported that the economic confidence index fell by 2.5 percent from the previous month, reaching 95.8 in June. This decline marks an acceleration from May's decrease of 0.8 percent, signaling a growing pessimism among economic participants.

All sub-indexes reflected this downturn, with the most significant drop observed in consumer confidence, which fell by 2.7 percent to 78.3. This substantial decline highlights the increasing concerns among consumers about the economic environment. Similarly, the confidence index for the retail trade sector plummeted by 2.6 percent month-on-month, reaching 108.8 in June, reflecting waning optimism in retail businesses.

The real sector, specifically the manufacturing industry, and the services indexes also saw decreases. The real sector index declined by 1.9 percent to 100.5, while the services index dropped by 1.5 percent to 115.4, indicating a broad-based decline in economic sentiment across various sectors. Additionally, the construction sector confidence index experienced a smaller yet notable decrease of 0.5 percent, falling to 87.9 in June.

It's important to note that a rating above 100 on the economic confidence index suggests an optimistic outlook for the overall economic situation, while a value below 100 indicates a negative assessment. The current reading of 95.8, below this threshold, underscores the prevailing negative sentiment and the challenges facing Türkiye's economy.

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