Turkey: Consumer confidence index rises in May

By Dilara Zengin

ANKARA (AA) - Turkey's consumer confidence index was higher month-on-month in May, according to official data released Thursday.

The index rose 2.1 percent to 72.8 in May from 71.3 in April, the Turkish Statistical Institute said in a report.

All sub-indices, including the financial situation, general economic situation, and number of people unemployed expectation indices, were higher, while the probability of savings index -- indicating people’s expectation of earning enough money to save -- dropped 6.9 percent to 23.3 points in May from 25.1 in April.

"The general economic situation expectations index, which was 96.2 in April, rose 4.5% to 100.6 in May. This increase shows that the number of consumers expecting a better general economic situation in the next 12 months increased compared to the previous month," the institute said.

The unemployment expectations index, a gauge of sentiment about the health of the labor market, saw a rise of 3 percent to 75.3 points in May.

The financial situation expectations of households index also climbed 1.4 percent from April to reach 92 points, suggesting that more people were expecting a better financial situation in the upcoming year.

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.