Turkey: Consumer confidence falls to four-month low in February
February 20, 2020
Consumer sentiment in Turkey fell to 57.3 in February, a four-month low, from 58.8 in January. Consequently, the index remained firmly entrenched below the neutral 100-mark that separates pessimism from optimism among households.
The drop in the headline figure reflected a broad-based deterioration in underlying components. Consumers’ expectations regarding their financial situation in the year ahead worsened, likely owing to still-high inflation, lira weakness and elevated unemployment. Moreover, the outlook on the labor market worsened as a greater number of people of expect the unemployment rate to rise in the next 12 months. Surprisingly, however, the probability of saving in the year ahead ticked up—although it remained very low—despite the Central Bank’s strong easing cycle bringing real interest rates into negative territory.
Author: Jan Lammersen, Economist