Turkey Economic Sentiment Slips to 5-Month Low

Turkey’s Economic Confidence Index fell to 97.3 in October 2026 from 101.3 in the previous month, dropping below the 100-point threshold separating optimism from pessimism for the first time in three months and reaching its lowest level since May. The decline was led by a sharp deterioration in consumer confidence, which fell 7.7% to a nine-month low of 84.8. Services confidence also dropped 2.4% to a five-month low of 109.2, while real sector confidence eased 1.4% to 101.1, its lowest since May. In contrast, retail trade confidence rose 1.1% to 112.5, its highest in four months, while construction confidence edged up 0.4% to a three-month high of 83.3.

Turkey’s Economic Confidence Index rose to 101.3 in September 2026 from 100.6 in August, remaining above the 100 threshold for a second consecutive month and reaching its highest level since June 2023. This signaled a more positive outlook, with notable improvements seen in retail and consumer confidence. The retail trade confidence index rose 1.1% from a month earlier to 111.3, while the consumer confidence index increased 1.3% to 91.9, although it remained below the 100 mark. The manufacturing confidence index edged up 0.1% to 102.5, while the services confidence index was unchanged at 111.9. In contrast, the construction confidence index decreased 0.2% to 83.0, staying well below the neutral threshold.

Turkey's Economic Confidence Index rose to 100.6 in August 2026 from 99.8 in the previous month, topping the 100 threshold for the first time since February. The headline index held above the 100 mark, indicating that economic sentiment pointed to a slightly optimistic outlook. The improvement was mainly driven by stronger consumer confidence, which rose 1.0% from a month earlier to 90.8, while manufacturing confidence increased 1.2% to 102.4, moving further above the 100 mark. In contrast, confidence in the services sector slipped 0.1% to 111.9, while retail trade confidence fell 0.8% to 110.1, although both remained above the threshold. Meanwhile, construction confidence remained weak, declining 0.4% to 83.1 and staying well below the 100 mark.