Turkey: Consumer sentiment hits four-year low in February
February 27, 2014
The consumer confidence index published by the Statistical Institute in cooperation with the Central Bank deteriorated from 72.4 points in January to 69.2 points in February, which marked the lowest level since February 2010. Consumer confidence remains firmly entrenched below the 100-point threshold that separates pessimistic from optimistic territory, which does not bode well for private consumption going forward.
According to the Statistical Institute, all of the index's sub-categories lost ground over the previous month. The drop in households' probability of saving in the coming 12 months was the largest. Sentiment regarding job prospects recorded a sizeable decline, falling to its lowest level on record. Consumers' outlook on the country's economic situation in the coming 12 months and households' views regarding their personal financial situations also deteriorated. According to analysts, the recent monetary policy tightening, the ongoing political unrest and volatility in the exchange rate market have started to influence consumers' morale.
FocusEconomics Consensus Forecast panelists see private consumption expanding 2.2% in 2014, which is down 0.7 percentage points from last month's forecast. For 2015, the panel expects private consumption to grow 3.6%.