Economic confidence index in Turkey which was 85.9 in August increased by 3.1% in September to 88.5

Update made in the consumer confidence index September 2020 press release has been also reflected in the economic confidence index. Detailed methodological information can be found in the “Methodological document regarding the major revision in the economic confidence index” attached to the press release.

Economic confidence index realized as 88.5

Economic confidence index which was 85.9 in August increased by 3.1% in September to 88.5. This increase in economic confidence index stemmed from the increases in consumer, real sector (manufacturing industry) and services confidence indices.

Consumer confidence index increased by 3.2% and became 82.0, real sector confidence index increased by 0.5% and became 105.7, services confidence index increased by 6.4% and became 74.9 in September compared to the previous month. On the other hand, retail trade confidence index decreased by 1.5% and became 93.5 and construction confidence index decreased by 2.0% and became 83.3 in September.

The economic confidence index calculated according to the before updated situation increased by 3.2% in September compared to the previous month; the index which was 85.9 in August became 88.6 in September.

Economic confidence index, September 2020

Economic confidence index, sectoral indices and the rate of changes, September 2020

The next release on this subject will be on October 28, 2020.
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EXPLANATION

Economic confidence index is a composite index that encapsulates consumers’ and producers’ evaluations, expectations and tendencies about general economic situation. The index is combined by means of a weighted aggregation of sub-indices of seasonally adjusted consumer confidence, real sector, services, retail trade and construction confidence indices.

In the calculation of economic confidence index, each sectoral weights are not directly applied to the five confidence indices themselves but to their normalised individual sub-indices series as equally-distributed in each sector. Within this scope, totally 20 sub-indices of confidence indices for consumer, real sector, services, retail trade and construction are used in the calculation.

Sub-indices used in the calculation of economic confidence index are calculated with data collected in the first two weeks of each month.

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