Turkey: Consumer sentiment plunges in September
September 27, 2013
The consumer confidence index published by the Statistical Institute in cooperation with the Central Bank fell to 72.1 points in September, down from 77.2 points in August. The print marks the lowest level observed since October 2012. Consequently, consumer confidence remains firmly entrenched under the 100-point threshold that separates optimistic from pessimistic territory.
According to the Statistical Institute, the deterioration was broad-based - all sub-categories that compose the index declined over the previous month. Consumers' pessimism increased particularly in regard to their economic situation in the next 12 months as well as their probability of saving in the next 12 months. Households were also more pessimistic regarding job prospects and their assessment of their financial situation in the next 12 months.
Consumer confidence levels remain low overall, which does not bode well for private consumption going forward. FocusEconomics Consensus Forecast panelists see private consumption expanding 3.0% this year, which is up 0.1 percentage points from last month's forecast. For 2014, the panel expects private consumption to grow 3.6%.