Turkey: Consumer confidence drops in May
May 21, 2019
Consumer sentiment among Turks dropped from 63.5 in April, which marked the best result since August 2018, to 55.3 in May, the lowest level since contemporary records began in 2004. The index consequently moved further south of the neutral 100-point mark that separates optimism from pessimism. May’s print was driven by a broad-based deterioration in consumer confidence.
Turkish households became more pessimistic regarding the outlook for their financial situations; the general economic situation in the country; the labor market; and their ability to save. The data is reinforced by the challenging situation in which the Turkish economy finds itself; the unemployment rate rose to 14.7% in January–February, the latest months for which data is available, while the lira depreciated more than 10% year-to-date against the U.S. dollar.
Turkey Private Consumption Forecast
FocusEconomics Consensus Forecast panelists see private consumption contracting 1.8% in 2019 before expanding 2.9% in 2020.
Author: Jan Lammersen, Economist