May 27, 2022
Economic confidence index in Turkey realized as 96.7
Economic confidence index which was 94.7 in April increased by 2.1% in May to 96.7. This increase in economic confidence index stemmed from the increases in consumer, services and retail trade confidence indices.
Consumer confidence index increased by 0.4% and became 67.6, services confidence index increased by 6.1% and became 121.7, retail trade confidence index increased by 1.7% and became 121.4 in May compared to the previous month. On the other hand, real sector (manufacturing industry) confidence index decreased by 0.7% and became 107.0, construction confidence index decreased by 2.2% and became 81.6 in May.
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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.
Source: Turkish Statistical Institute (TurkStat)
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