Economic confidence index in Turkey increased by 11.8% in July to 82.2

Economic confidence index which was 73.5 in June increased by 11.8% in July to 82.2. This increase in economic confidence index stemmed from the increases in real sector (manufacturing industry), services, retail trade and construction confidence indices.

Economic confidence index, July 2020

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

The next release on this subject will be on August 28, 2020.
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EXPLANATIONS

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.