Confidence in economy improves in December

The economic confidence index increased by 1.1 percent in December after declining 1.3 percent in the previous month, the Turkish Statistical Institute (TÜİK) has said.

Even though it climbed to 96.4, the index still remained below the 100-mark. Any index figure above 100 indicates an optimistic outlook regarding the general economic situation.

Consumer sentiment continued to improve with the month-on-month increase in the consumer confidence sub-index accelerating from 1.1 percent in November to 2.6 percent in December, the data from TÜİK showed on Dec. 28.

Businesses in the real-estate sector appeared to be more optimistic in December than they were in October. The real-estate sector confidence index fell 0.5 percent, but the decline was smaller compared with November when the gauge of business sentiment plunged 1.3 percent month-on-month.

Confidence in the services sector rose by 1.2 percent after declining 2.4 percent in November, said TÜİK.

The most noticeable improvement was observed in the retail trade sector. The confidence in this sector leaped 4.5 percent month-on-month, comparing favorably with the 1.9 percent decline last month.

The sentiment in the large construction sector, however, turned sour in December. The confidence index in this industry plunged 3.3 percent after rising 2.2 percent in November.

The economic activity is likely to pick up in the second half of 2024, said Erdal Bahçıvan, the president of the Istanbul Chamber of Industry (İSO) in a speech he delivered at the İSO's assembly meeting on Dec. 27.

"We need to 'repair' not only macroeconomic balance but also the investment environment," he said, welcoming the steps taken by the new economic management team.