Turkey: Consumer sentiment declines in June
June 27, 2013
In June, the consumer confidence index published by the Statistical Institute in cooperation with the Central Bank fell to 76.2 points from the 77.5 points hit in May, which had marked the highest level seen in one year. As a result, consumer confidence remains firmly entrenched below the 100-point threshold that separates optimistic from pessimistic territory and at its current level the index is 0.5 points below the level observed in the same month last year.
According to the Statistical Institute, the deterioration seen in consumer confidence was broad-based, as three out of the four sub-components of the index lost ground over the previous month. The expected economic situation in the next 12 month recorded the largest decrease, followed by a significant drop in consumers' assessment regarding their financial situation in the next 12 months. On the other hand, the probability of saving in the next 12 months hit its highest level in over one year.
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 unchanged from last month's forecast. For 2014, the panel expects private consumption to grow 4.4%.