Turkish consumer confidence falls to record low

Turkey’s consumer confidence index hit a new record low in June, official data showed on Wednesday, as soaring inflation further weighed on sentiment.

The index fell 6.2% to 63.4 points this month, according to consumer trends survey figures from the Turkish Statistical Institute (TurkStat) and the Central Bank of the Republic of Turkey (CBRT).

The sharpest deterioration in confidence was seen in expectations for household finances over the next 12 months, with that index falling 10% from the previous month, the data showed.

Fueled by soaring food and energy prices, Turkey’s annual inflation rate rose at a weaker pace than expected in May, but still hit a 24-year high of 73, 5%.

The indicator reflecting the assessment of the current financial situation fell to 44.5 in June, from 48.5 in May.

The gauge measuring the anticipation of the financial situation over the next 12 months weakened to 59.9 from 66.5. Consumer sentiment on the future general economic situation fell to 61.6 in June from 66.3.

The assessment of spending on durable goods over the next 12 months weakened, with the index falling to 97.5 from 89.0 the previous month.

Confidence had declined in 2020 due to the fallout from the COVID-19 pandemic before a rebound that began to falter in October last year. The index had previously hit a record low of 67.3% in April.

A confidence level below 100 reflects a pessimistic outlook, while a level above 100 indicates optimism.

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