Turkey's economic confidence index drops in December

By Gokhan Ergocun

ANKARA (AA) - Economic confidence in Turkey slipped month-on-month in December, falling 3 percent, the Turkish Statistical Institute (TurkStat) said on Thursday.

The economic confidence index dropped to 95, down from 97.9 in November, TurkStat said in a statement, stemming from drops in the consumer, real sector, services, and construction confidence indices.

The four indices declined in the month to 65.1, 109.2, 96.2 and 81.6, respectively.

According to the report, only the retail trade confidence index showed improvement, rising 0.7 percent to 100.6.

In August, Turkey’s economic confidence rose to its highest level in more than five years, helping the Turkish lira strengthen against the dollar.

The country’s economy expanded beyond forecasts in the first quarter (5.3 percent) and second quarter (5.4 percent) of this year, according to TurkStat.

Turkey became the fastest-growing economy among G20 countries with its unexpectedly high 11.1 percent growth in the third quarter of 2017.

According to TurkStat, the index indicates an optimistic outlook on the general economic situation when it is above 100, or a pessimistic outlook when it is below 100.

"The economic confidence index is a composite index, encapsulating the evaluations, expectations, and tendencies of both consumers and producers on the general economic situation," TurkStat said.

The next economic confidence figures are due for release on Jan. 30.