The Turkish Statistical Institute (TurkStat) announced on Wednesday that the consumer confidence index, a key indicator of public sentiment toward the economy, declined by 1.8% in July to 83.5, down from 85.1 in June.

The index, derived from the consumer tendency survey conducted in collaboration with the Central Bank of the Republic of Türkiye, reflects growing caution among Turkish consumers regarding economic conditions.

The survey assesses households’ views on their financial situation, general economic outlook, and spending intentions. A reading below 100 indicates pessimism, signaling that consumers are less optimistic about the economy compared to the previous month.

The drop in consumer confidence comes amid ongoing economic challenges in Türkiye, including high inflation and currency depreciation, which have strained household budgets. Analysts suggest the decline may reflect concerns over rising costs and uncertainty about future economic stability.

TurkStat’s report did not provide specific reasons for the decrease but noted that the survey covers a broad range of consumer sentiment metrics, including expectations for employment, savings, and major purchases over the next 12 months. (ILKHA)