Turkey: Consumer sentiment hits one-year high in May
May 30, 2013
The consumer confidence index published by the Statistical Institute in cooperation with the Central Bank rose from 75.6 points in April to 77.5 points in May, which marks the highest level seen in one year. However, consumer confidence still remains below the 100-point threshold that separates optimistic from pessimistic territory and at its current level the index is 0.6 points below the level observed in the same month last year.
According to the Statistical Institute, the improvement seen in consumer confidence was broad-based, as three out of the four sub-components of the index gained ground over the previous month. The expected economic situation in the next 12 month recorded the largest increase, followed by a significant rise in consumers' assessment regarding their financial situation in the next 12 months. On the other hand, job prospects for the next 12 months decreased over the previous month.
Low levels of consumer confidence do not bode well for private consumption going forward. FocusEconomics Consensus Forecast panellists see private consumption expanding 3.1% this year, which is down 0.3 percentage points from last month's forecast. For 2014, the panel expects private consumption to grow 4.4%.