Turkey's economic confidence index weakens in December

Turkey's economic confidence index registered a decline of 18.5 percent from November to December, according to Turkish Statistical Institute data released on Thursday. The decrease was mainly driven by fall in consumer, real sector and services confidence indices.

Details of the report showed the sub-index tracking consumer confidence fell by 8 percent in December to 63.38. The sub-index for the real sector dropped by 3.7 percent to 103.60 and that of services fell by 3.5 percent to 93.35.

Optimism was seen in retail trade, the reading for confidence in the sector increased slightly by 0.1 percent to 96.13 and the construction confidence index went up by 0.5 percent.

The economic confidence index is seen as a significant reading of the economic course and today's reading paints a dull picture. Driven largely by public spending and domestic consumption, Turkey's economy was expected to grow by 3.1 percent in the year, according to World Bank statistics.

Official data showed on 12th December that Turkey's economy contracted for the first time in seven years during the third quarter as mounting uncertainties since a failed summer coup crimped domestic demand and devastated key industries. Turkey's gross domestic product (GDP) in July through September shrunk by 1.8 percent annually, sinking deeper into negative territory.