Turkey: Consumer sentiment improves in April
April 29, 2013
In April, the consumer confidence index published by the Statistical Institute in cooperation with the Central Bank rose to 75.6 points from 74.9 points in March. As a result, consumer confidence remains well below the 100-point threshold that separates optimistic from pessimistic territory. Moreover, at its current level, the index is now only 0.1 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 that compose 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 job prospects for the next 12 months. In addition, consumers' assessment regarding their financial situation in the next 12 months registered a mild advance. On the other hand, the probability of saving in the next 12 months decreased.
Low levels of consumer confidence do not bode well for private consumption going forward. FocusEconomics Consensus Forecast panellists see private consumption expanding 3.4% this year, which is unchanged from last month's forecast. For 2014, the panel expects private consumption to grow 4.4%.