ANKARA
Turkish consumer confidence rose in April as the public expected to be able to save more, according to a Turkish Statistical Institute survey released on Wednesday.
The Consumer Confidence Index rose 1.5 percent on the previous month, a reversal on the five-month trend since October that saw the index fall to 64.4 in March. It currently stands at 65.35.
Banu Kivci Tokali, chief economist at Halk Yatirim brokers, said the modest rise was mainly due to the consumption of durable goods, automobiles and housing.
“Households feel more confident about their financial situation,” she told the Anadolu Agency. “Some stabilization in financial volatility may be deemed as supportive for the recent recovery in consumer confidence.”
Tokali highlighted a “visible ease in currency volatility,” continued political stability and fresh economic management after Turkey’s June general election as important factors in reinforcing the apparent recovery of consumer confidence.
Financial expectations seem to be driving the improvement with the index of household finances rising 0.9 percent on March. For the same period, the index measuring expectation of increased savings, or greater disposable income, jumped 8.5 percent from the previous month.
However, April’s expectations are still limited as a reading below 100 shows a pessimistic consumer outlook.
Unemployment remains a concern, with the expectation of a rise in unemployment jumping 2.2 percent.
Turkey's unemployment rate rose from 10.9 percent in December to 11.3 percent in January.
