Turkey's Consumer Confidence Marks Lowest Level Since Global Financial Crisis

– The consumer confidence index in Turkey declined in August to 62.35, which is the lowest level since global financial crisis term.

The previous index released by Turksat in cooperation with Central Bank in July has showed a confidence rate at 64.66 level. The index has dropped by 3.6 percent, against the previous month in July.

According to data released by Turkstat, the index has showed the lowest level with 61.55 in March 2009, when the heavy global financial crisis hit the economy.

While the index's higher levels than 100 show an optimist outlook, lower levels than 100 show a pessimist outlook in consumer confidence.

On the other hand, the financial situation expectation of household index dropped by 2.3 percent compared to the previous month. While the index was 88.24 in July, it dropped to 86.17 in August. According to the report, the decrease has stemmed from the decline in the ratio of people expecting better financial situation of household, in the next 12 months period.

Additionally, the general economic situation expectation index that was at 84.33 in July, dropped by 8 percent to 77.60, in August. The report links this decline to the number of consumers who have expected a better general economic situation in the next 12 months fell compared to the previous month.

The number of people unemployed expectation index declined by 0.6 percent against the previous month to 63.48 in August. This drop arose from the increase in the ratio of people expecting a rise in the number of unemployed persons, in the next 12 months.

According to Turkstat's report, the probability of saving index decreased by 0.2 percent from 22.20 to 22.16 in August, against July, as well. This decline points to the possibility of a fall in savings of consumers in the next 12 months period, compared to the previous month, revealed the index.

(Graph) - Istanbul