Economic Confidence Index Decreased By 5.4 Percent

- Economic confidence index fell by 5.4 percent to 78.66 level in June, down from 83.12 in May, as as confidence decreases in both manufacturing industry and services sectors, according to the Economic Confidence Index data released by Turkstat on Monday.

Economic confidence index indicates an optimistic outlook about the general economic situation when the index is above 100, on contrary it indicates a pessimistic outlook when it is below 100.

Real sector confidence index decreased by 2.3 percent to 101.50 level in June, doqn from 103.90 in May. Services confidence index fell by 1.4 percent to 99.04.

Consumer confidence index, rose by 3.4 percent to 66.45 in June, from 64.29 in May. Retail trade confidence index rose by 0.6 percent to 104.12 in June from 103.51 in May. Construction confidence index rose by 1.6 percent to 84.73 over the same period.

Economic confidence index is a composite index that encapsulates consumers’ and producers’ evaluations, expectations and tendencies about general economic situation.

In the calculation of economic confidence index, sectoral weights are not directly applied to the five confidence indicators themselves but to their normalized individual sub-indices. The point of normalization is to make variables comparable to each other.

Consumer confidence index as one of the composing indicators of economic confidence index is calculated from Consumer Tendency Survey results, which is conducted by the cooperation of Turkstat and Central Bank of Turkey. Real sector confidence index is calculated by Central Bank of Turkey and services, retail trade and construction confidence indices are calculated by Turkstat.