Turkey: Consumer sentiment soars following Erdogan's decisive electoral victory
November 20, 2015
The consumer confidence index, which is published by the Statistical Institute in cooperation with the Central Bank, jumped from October’s 62.8 points to 77.1 points in November. November’s figure marked the highest reading since April 2014 as political uncertainty diminished following the landslide victory of President Recep Tayyip Erdogan’s Justice and Development Party (AKP) in the 1 November general election. Despite November’s stratospheric increase, consumer confidence still remains far below the 100-point threshold that separates pessimistic from optimistic territory.
November’s result came on the back of a broad-based improvement in the index. Consumers were more optimistic regarding their economic situation in the next 12 months. Moreover, households were less pessimistic about unemployment and their financial situation in the next 12 months. In addition, consumers’ views on their probability of savings in the next 12 months improved in November compared to October.