Consumer sentiment in Türkiye weakened sharply in October, according to data released on Thursday by the Turkish Statistical Institute (TÜİK), with households turning more pessimistic about both their own finances and the wider economy.
The consumer confidence index fell 7.7% from the previous month to 84.8, down from 91.9 in September. The index, compiled by TÜİK together with the Central Bank of the Republic of Türkiye (TCMB), runs from 0 to 200; any reading below 100 means pessimists outnumber optimists.
All four components fell
Every sub-index declined in October. Households’ assessment of their current financial situation dropped 9.3% to 68.3, the weakest of the four components. Expectations for household finances over the next 12 months fell 7.7% to 86.4, while expectations for the general economic situation over the same period slid 9.0% to 81.7.
The assessment of whether now is a good time to spend on durable goods such as cars, furniture and household appliances fell 5.6% to 102.7, but it remains the only component above the 100 threshold.
According to an analysis by financial news site Endeks24, it was the largest monthly fall since August 2023 and left the index at its lowest level since January 2026. It also wiped out most of the gains made between January and September. Compared with October 2025, the index was still 1.4% higher.
Rate decision later today
The data came a few hours before the central bank’s Monetary Policy Committee was due to announce its interest rate decision at 14:00 Istanbul time. The policy rate currently stands at 37%, and the bank’s own market participants survey pointed to an expected cut to 36%, as reported by Endeks24. Other sentiment indicators have also softened this month: the real sector confidence index published on Oct. 21 fell 1.4 points to 101.1.
The decline in sentiment comes as households continue to feel the effects of high inflation. Market participants expect annual inflation to end the year at around 29.6%, according to the central bank’s October survey, and the trade minister said this week that house prices have risen more slowly than inflation.
What it means for foreign residents
Consumer confidence is a forward-looking gauge of household spending, which drives a large part of Türkiye’s economy. A drop of this size suggests Turkish households may hold back on big purchases in the coming months, which can affect retail, car and housing demand. For foreigners budgeting in lira, the figures are a reminder that price pressures remain the main concern for local households; see our cost of living in Türkiye guide for a breakdown of typical expenses.
TÜİK will publish services, retail and construction confidence indices on Oct. 26, and the November consumer confidence figure on Nov. 20.
Sources
- Tüketici güven endeksi Ekim’de aylık bazda yüzde 7,7 azalarak 84,8 oldu (Capital)
- Tüketici güveni ekimde 84,8’e indi, Ağustos 2023’ten beri en sert düşüş (Endeks24)
Photo: Nedret Binici / Unsplash License, via Unsplash
