Turkey economic confidence falls in September

Economic confidence in Turkey dropped in September, led by declines for the manufacturing industry and consumer sentiment.

The economic confidence index fell to 86 this month from 87.1 in August, the Turkish Statistical Institute said on Friday. The index stood at 78.1 in September last year in the immediate aftermath of a currency crisis that led to a surge in inflation and interest rates.

Turkey’s government has introduced cheap loans from state-run banks, tax breaks for consumers and businesses and increased spending to help revive economic growth. President Recep Tayyip Erdoğan has set a growth goal of 5 percent for next year. The IMF said this week that the economy could expand by 0.25 percent in 2019.

Consumer confidence dropped to 55.8 in September from 58.3 in August, the institute said Industrial confidence slid to 99.7 from 102.1. Any reading below 100 indicates pessimism about the future. Confidence rose in the services and retail sectors and in the construction industry.

Turkey economy confidence
Source: Turkish Statistical Institute