Turkey: Consumer sentiment hits seven-month high in February
January 16, 2013
The consumer confidence index published by the Statistical Institute in cooperation with the Central Bank rose from 75.8 points in January to 76.7 points in February, which marks the highest level seen since July 2012. Despite the monthly increase, consumer confidence remains below the 100-point threshold that separates optimistic from pessimistic territory. Moreover, at its current level, the index is now 3.0 points below the level observed in the same month last year.
According to the Statistical Institute, the increase in consumer confidence was broad-based as three out of the four sub-components that compose the index improved over the previous month. The probability of saving in the next 12 months registered the largest increase, while the economic situation and job prospects for the next 12 months recorded milder gains. On the other hand, consumers' assessment regarding their financial situation for the next 12 months deteriorated.
Low levels of consumer confidence do not bode well for private consumption going forward. FocusEconomics Consensus Forecast panellists see private consumption expanding 3.6% this year, which is up 0.1 percentage points from last month's forecast. For 2014, the panel expects private consumption to grow 4.5%.