Turkish economic confidence rises for first month in four

Economic confidence in Turkey climbed in November, rising for the first month in four, as a currency crisis that peaked in August appeared to dissipate.

The economic confidence index, which covers consumers, retail, services, industry and construction, rose to 73.7 from 67.5 in October, government data published on Thursday showed. It was the highest level in three months. The biggest gain was in industrial confidence, which climbed to 96.8 from 91.1.

Confidence in the economy has slumped this year as concern among investors for economic overheating was exacerbated by a political crisis with the United States over the internment of a U.S. pastor. The lira hit a record low of 7.22 per dollar in August, but has since recovered to trade at 5.18, helped by the pastor’s release, lower oil prices and government pledges of economic austerity.

While economic confidence rose in November, it has fallen from 104.9 in January and 83.9 in August. The construction confidence index was an outlier this month, with confidence deteriorating to 56.6 from 58.7. Any reading below 100 indicates pessimism about the future.

Economic Confidence Index (Source: Turkish Statistical Institute)