Turkish economic confidence slumps for second month

Economic confidence among businesses and consumers in Turkey slumped for a second month in a decline last seen during the global financial crisis.

Confidence fell to 71 in September from 83.9 in August, taking losses to more than 20 points since July, data provided by the Turkish Statistical Institute showed. Any reading below 100 indicates pessimism about the future.

Turkish companies face the prospect of a prolonged economic downturn after a currency crisis wiped almost 40 percent off the value of the lira and inflation surged to almost 19 percent.

Confidence amonf firms in the construction sector, a driver of economic growth under President Recep Tayyip Erdogan, led declines, falling 16.7 points to 57.3. Consumer confidence slid 13.2 points to 59.3. Manufacturing, services and retail confidence also saw significant drops.

Turkey business confidence
Source: Turkish Statistical Institute