Consumer confidence in Türkiye rose in September to its highest level in more than eight years, according to the Turkish Statistical Institute (TurkStat), even as financial markets were shaken by turmoil in the investment fund sector.
The consumer confidence index increased to 91.9 in September from 90.8 in August, the highest reading since July 2018, according to data reported on September 22.
Durable spending plans jump
The biggest improvement came in households' intentions to spend on durable goods such as cars, appliances and furniture, which rose to 108.8 from 105.1. Expectations for household finances over the next 12 months improved to 93.7 from 93.1, and the outlook for the general economic situation edged up to 89.8 from 89.4.
The only sub-index to weaken was the assessment of households' current financial situation, which slipped marginally to 75.3 from 75.4.
Still below neutral
Despite the improvement, the headline index remains below the 100 threshold that separates optimism from pessimism, meaning Turkish consumers are still broadly pessimistic about economic conditions. The index has stayed below that level for years, reflecting the impact of high inflation on living standards.
The survey coincided with a period of market stress. In mid-September, regulators ordered the liquidation of 131 investment funds after several managers failed to meet redemption requests, and the BIST 100 stock index fell 12.4% over the month. The consumer survey is typically conducted during the first two weeks of the month, so it may not fully capture the impact of those events.
Other indicators also suggest households are still spending. TurkStat data showed retail sales volume up 10.1% year on year in August, led by electronics and online purchases. In Türkiye, households often bring forward purchases of durable goods to protect their savings against inflation, which can lift spending intentions.
Annual consumer inflation eased below 30% in September. The government expects it to fall to 28.4% by the end of the year and to 21% in 2027, according to its Medium-Term Program.
Sources
Photo: EWilson (Volunteer) / CC BY-SA 4.0, via Wikimedia Commons
