Turkey: Consumer confidence moderates slightly in December
January 21, 2011
In December, the consumer confidence index, published by the Statistical Institute in cooperation with the Central Bank, inched down to 91.0 points from 91.3 points in November. December's reading represents a pause in the upward trend in place since November 2009. The confidence index has remained below the 100-point threshold that separates optimistic from pessimistic territory since May 2006. At the current level, however, consumer sentiment is 15.5% higher than in the same month the year before, suggesting that the recovery in private consumption remains ongoing. The moderation in consumer sentiment reflected a more pessimistic assessment of consumers' current purchasing power. In addition, respondents were less upbeat regarding future job opportunities. The survey results were negatively affected by higher inflation figures in December, which exceeded the Central Bank's target. On the other hand, prospects for the external sector improved amid the depreciation of the Turkish lira.