Turkey: Consumer sentiment moderates further in January on rising geopolitical tensions
January 21, 2016
The consumer confidence index, published by the Statistical Institute in cooperation with the Central Bank, receded from December’s 73.6 points to 71.6 points in January. Consumer confidence continues to decline as households are increasingly concerned about the ongoing struggle against Kurdish militants in the southeast of the country. Consumer confidence remains far below the 100-point threshold that separates pessimistic from optimistic territory.
January’s result came on the back of a broad-based deterioration as all but one of the components of the index lost ground over the previous month. Consumers were much more pessimistic regarding their economic situation in the next 12 months as well as their job prospects. Moreover, households were more pessimistic about their financial situation in the next 12 months. On the upside, consumers’ views on their probability of savings in the next 12 months improved in January and hit a 15-month high.