According to figures provided by Turkey’s state statistical institution TÜİK (TurkStat), Turkey’s seasonally adjusted economic confidence index fell by 44.1% to 51.3 points in April 2020 from 91.8 points in the previous month of March. The fall in the index may is attributable to the global spread of the coronavirus epidemic originating in China and the subsequent fall-out to the Turkish economy caused by the downturn in world trade and the lockdown of the Turkish population.
The index was revised In January 2019 to allow for seasonal adjustments, and was further revised arbitrarily in January 2020. The revised index at the beginning of 2018 was 106.2 ponts, and this fell to a revised 82.5 points at the beginning of 2019.
The services sector confidence sub-index fell 50.1% to 46.1 points, the construction sub-index fell 42.2% to 44.7 points, the real sector confidence sub-index fell 36.8% to 62.3 points, the retail trade confidence sub-index fell 26% to 75.2 points, and the consumer confidence sub-index fell 5.8% to 54.9 points.
Despite upward revisions, Turkey’s economic confidence index is still below the crucial 100 points level. In Turkey, the economic confidence index is a composite index that covers encompasses consumers’ and producers’ evaluations, expectations and tendencies about the general economic situation. The index is produced by a combination of a weighted aggregation of normalized sub-indices of consumer confidence, seasonally adjusted real sector (manufacturing industry), services, retail trade and construction confidence indices. The economic confidence index indicates an optimistic outlook about the general economic situation when the index is above 100, and contrarily indicates a pessimistic outlook when it is below 100.