Economic confidence of Turkey decreases in July

(MENAFN) According to a report published by the Turkish Statistical Institute on Tuesday, Türkiye's economic confidence index saw a decline of 1.5 percent, falling to 94.4. This decrease indicates a broad-based reduction in economic optimism across several key sub-indexes for the month of July.

The consumer confidence index, which reflects household sentiment about the economy, experienced the most pronounced drop, declining by 3.1 percent to 75.9. This significant decrease suggests heightened concerns among consumers regarding their economic outlook. The real sector confidence index, which measures the sentiment of businesses in the industrial and manufacturing sectors, also fell by 1.8 percent, reaching a value of 98.7. This drop reflects a cooling in business optimism about current economic conditions.

Additionally, the retail trade confidence index, which gauges expectations within the retail sector, decreased by 1.5 percent, bringing it down to 107.1. The services confidence index, which tracks sentiment in the service sector, saw a reduction of 1.1 percent, ending at 114.1. The construction confidence index, indicative of the sentiment in the construction industry, experienced a smaller decline of 0.9 percent, settling at 87.1.

The economic confidence index is a critical measure of overall economic sentiment in Türkiye and can range from 0 to 200. Values above 100 typically signify a positive outlook on economic conditions, while values below 100 suggest a more negative or cautious perspective. The current dip below the 100 mark points to a growing sense of economic uncertainty and caution across various sectors, reflecting a broader trend of reduced confidence in the Turkish economy.

MENAFN30072024000045015839ID1108498840