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Turkey: Consumer sentiment up, business confidence down

Staff Writer |
The consumer confidence index, published by the Statistical Institute in cooperation with the Central Bank, inched up from 63.4 in December to 66.9 in January.

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Despite the increase, the index remains far below the 100-threshold that separates pessimistic from optimistic territory.

January’s slight increase was due to an improvement in consumers’ views regarding the general economic situation in the next 12 months.

Moreover, households’ assessments of their financial situation in the next 12 months improved and their view on the probability of saving recovered from the previous month’s record low.

The Manufacturing Purchasing Managers’ Index (PMI) produced by the Istanbul Chamber of Industry (ICI) and IHS Markit increased from 47.7 in December to 48.7 in January, remaining firmly below the 50-point threshold that separates contraction from expansion in the manufacturing sector.

The Real Sector Confidence Index published by the Central Bank dropped from 98.4 in December to 97.0 in January, the lowest figure since December 2009 and below the 100-point threshold which separates optimistic from pessimistic sentiment among firms.

Consumer prices increased 2.46% in January compared to the previous month, higher than the 1.64% rise registered in December and overshooting analysts’ expectations of a 1.78% jump. Prices for alcoholic beverages and tobacco increased the most.

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