Turkish consumer confidence rises for first time in four months

Turkish consumer confidence increased for the first time in four months in November from the lowest level in almost a decade.

The index of confidence climbed to 59.6 from 57.3 in October, it's lowest level since December 2008, according to data published by the Turkish Statistical Institute on Thursday.

While Turkish consumers saw an increase in unemployment over the next 12 months, expectations for household finances and the economy improved. The probability of saving also increased.

Turkey is showing tentative signs of a recovery from a currency crisis that peaked in August. On Wednesday, figures showed sales of homes rising for the first time in three months.

Still, inflation in Turkey has accelerated to a 15-year high of 25.2 percent. Surging inflation has pushed up interest rates on business and consumer loans, increasing costs and spurring unemployment because companies are cutting costs.

The lira has strengthened from a record low of 7.22 per dollar in August, when concerns about an overheating economy were heightened by a political crisis with the United States. The currency traded at 5.336 per dollar on Thursday, down 0.5 percent on the day. It has lost almost a third of its value against the dollar this year.

On Monday, the statistics institute will publish surveys of business confidence and manufacturing capacity usage for November – important indicators of where the economy is heading.

Source: Turkish Statistical Institute