Türkiye’s overall economic confidence improved slightly in October, according to data released on Thursday by the Turkish Statistical Institute (TurkStat).

The economic confidence index increased by 0.3%, rising from 98.0 in September to 98.2 in October, signaling a modest gain in overall sentiment among consumers and businesses.

TurkStat said the small increase reflected mixed performances across different sectors of the economy.

The consumer confidence index fell by 0.3% to 83.6, showing continued caution among households. The real sector (manufacturing industry) confidence index rose by 1.2% to 102.0, indicating improving optimism among industrial producers.

The services confidence index dropped by 0.3% to 110.7, while the retail trade confidence index climbed by 3.7% to 113.2, showing stronger sentiment among retailers. In contrast, the construction confidence index fell sharply by 5.3% to 83.7, suggesting a weaker outlook in the building sector.

The economic confidence index is a composite measure reflecting the general economic outlook, based on the views of consumers and producers in key industries. A value above 100 indicates optimism, while below 100 signals pessimism.

Although the October reading remains below 100, economists said the rise shows relative stability in Türkiye’s business environment despite ongoing inflationary pressures and high borrowing costs.

TurkStat publishes the economic confidence index every month to provide an overview of economic expectations and activity trends across major sectors. (ILKHA)