Turkey: Consumer confidence rises further in May

The consumer confidence index, which is published by the Statistical Institute in cooperation with the Central Bank, increased to reach 72.8 points in May from 71.3 points in April. The consumer confidence index rose for the third consecutive month and registered the highest level in seven months. Nonetheless, the index remains far below the 100-threshold signaling pessimism among Turkish households.

May’s rise came on the back of improvements in consumers’ views concerning the general economic situation, their financial situation and employment expectations. In fact, consumers’ views regarding the general economic situation rose above the 100-threshold for the first time since October 2016. While the number of people expecting better job prospects increased, consumers were more pessimistic regarding their propensity to save.

FocusEconomics Consensus Forecast panelists see private consumption expanding 2.6% in 2017, which is up 0.7 percentage points from last month’s forecast. For 2018, the panel expects private consumption to grow 3.0%.