Consumer Confidence Index At Lowest Since Global Crisis

– The consumer confidence index dropped to 58.52 in September and saw its lowest value since January 2009, the period where global financial crisis had the utmost impacts. Meanwhile, the probability of saving decreased by 18.3 percent, against the same period of 2014.

According to the index released by Turkstat in cooperation with Central Bank, the consumer confidence was at value of 62.35, in August. The index fell by 6.1 percent in Sept. against the previous month. According to data released by Turkstat, the consumer confidence, therefore, fell to its lowest value since January 2009 where the rate had seen the 58.3 level.

The consumer confidence index indicates an optimistic outlook when the index is above 100, a pessimistic outlook when it is below 100.

Turkstat report also announced that significant declines have occurred in financial situation expectation decreased, general economic situation, number of people unemployed expectation and probability of saving, the four components that constitute the index.

In this regard, in Turkey where the rates of saving has been significantly low, the probability of saving of household index fell under 20 percent level.

Financial situation expectation

The financial situation expectation of household index fell by 4.7 percent compared to the previous month. The index which was at 86.17 level in August, dropped to 82.08 in September. This decline stemmed from the decline in the ratio of people expecting better financial situation of household in the next 12 months period.

General economic situation expectation

The general economic situation expectation index that has seen the 77.60 level in August fell by 7.2 percent to 72.04 in September. This decline points out that number of consumers expected a better general economic situation in the next 12 months fell against the previous month.

Number of people unemployed expectation

Additionally, the number of people unemployed expectation index dropped by 2.6 percent against the previous month to 61.86, in September. This decline resulted from the rise in the ratio of people expecting an increase in the number of unemployed persons, in the next 12 months.

Probability of saving

The probability of saving index also fell by 18.3 percent from 22.16 to 18.11 in September against August. This decrease illustrates that the possibility of saving of consumers in the next 12 months period fell against the previous month.

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