ANKARA: Turkish economic confidence index increased by 1.5 percent to 80.1 percent in May, a second upward move after a plunge in March, according the data released by the Turkish Statistics Institute (TurkStat) on May 27. The index dived by 15.4 percent in March to 74.8 percent, the lowest level in its 15-month history.
The increase in economic confidence index stemmed from increases in the real sector (the manufacturing industry), services, retail trade and construction confidence indices.
The economic confidence index indicates an optimistic outlook about the general economic situation when the index is above 100. Conversely, it indicates a pessimistic outlook when it is below 100.
Compared to the previous month, the real sector confidence index rose by 1.2 percent, services confidence index by 0.1 percent, retail trade confidence index by 1.4 percent and construction confidence index by 2.9 percent in May, while the consumer confidence index fell by 1.6 percent over the same period.
Economic confidence index is a composite index that encapsulates consumers’ and producers’ evaluations, expectations and tendencies about the general economic situation.
The index is combined by means of a weighted aggregation of normalized sub-indices of consumer confidence, a seasonally adjusted real sector, services, retail trade and construction confidence indices.
Consumer confidence index as a composed indicator of economic confidence index is calculated from Consumer Tendency Survey results, which is conducted with the cooperation of TurkStat and Turkey’s Central Bank.
