Turkish Statistical Institute Announces Economic Confidence Index

The economic confidence index rose from 73.5 in June to 82.2 in July, representing an increase of 11.8%. According to data from the Turkish Statistical Institute (TÜİK), the rise in the economic confidence index was driven by increases in the confidence indices of the real sector (manufacturing), services, retail trade and construction sectors.

The Turkish Statistical Institute defines an economic confidence index above 100 as reflecting optimism about the general economic situation, while a figure below 100 indicates pessimism about the general economic situation. The real sector confidence index increased 10.7% on a monthly basis to reach 99.4, the services sector confidence index rose 20.2% to 66.7, the retail trade confidence index increased 9.6% to 94.6, and the construction sector confidence index rose 11.6% to 87.0. The consumer confidence index declined 2.7% in July to 60.9. The economic confidence index is a composite index summarizing the assessments, expectations and trends of consumers and producers regarding the general economic situation. It is compiled by weighting and combining sub-indices of the seasonally adjusted consumer confidence index and the confidence indices for the real sector, services, retail trade and construction sectors. In the calculation of the economic confidence index, the weight of each sector is distributed equally across its normalized sub-indices and is not applied directly to the confidence indices. Within this scope, a total of 20 sub-indices belonging to the consumer, real sector, services, retail trade and construction sectors are used in the calculation. The sub-indices used in calculating the economic confidence index are computed using data compiled during the first two weeks of each month.   Source