-ADDS ANALYST COMMENTS
ANKARA (AA) – Turkey’s consumer confidence index fell month-on-month in November, according to a Turkish Statistical Institute report released Tuesday.
The index slipped from 74.04 points in October to 68.93 points in November, down 5.11 points or 6.9 percent, the report said.
The financial situation expectations of household index was 89.01 compared to 94.09 last month, down 5.4 percent.
The probability of saving was down significantly, 12.7 percent from 23.27 in October to 20.33 in November, suggesting that more people feel pessimistic about being able to save money in the coming months.
"It seems that the decline of the Turkish lira's value against the dollar has lowered consumer confidence in the economy," said Enver Erkan of investment firm KapitalFX. "This situation will have a two- or three-month delayed effect on the inflation rate as well. When the effect of the currency depreciation is reflected in consumer prices, it may reduce consumer confidence index more"
The unemployment expectations index, a gauge of sentiment about the health of the labor market, also saw a decline of 7.6 percent from the previous month to 71.3 points.
November’s general economic situation expectations index also fell 6.5 percent from the previous month to 95.06 points.
"At the same time, downward risks of the economic growth rate were also reflected in the index. Although the index is relatively higher than it was in the last three months, it got into a negative trend once more in November," Erkan warned.
The consumer confidence index is seen as a vital gauge of the overall health of the economy, indicating people's sentiments about spending their money, which in turn gives clues about economic vitality in the days to come.