Turkish economic confidence lowest in 18 months

Turkey’s economic confidence index fell to the lowest in 18 months in June, data published by the Turkish Statistical Institute showed.

The index, which measures the outlook of consumers and businesses towards the economy, dropped for the fifth-straight month to 90.4, the institute said on Thursday. It had stood at 93.5 in May. The reading was the lowest since January 2017.

Construction sector confidence led the declines, falling to 75.3 from 77.2. Any reading below 100 indicates pessimism about the future.

Turkey’s economic growth is slowing after the central bank raised interest rates by 425 basis points in May and June to stave off a currency crisis. The lira has slid almost 20 percent this year on concern that the economy was overheating. Turkey grew 7.4 percent in the first quarter, the fastest in the 34-member OECD, matching its growth performance in 2017.

Turkish economy confidence
Source: Turkish Statistical Institute