Consumer confidence declines 0.4 percent in January: Data

The consumer confidence index declined by 0.4 percent month-on-month in January after rising 1.9 percent the previous month, the Turkish Statistical Institute (TÜİK) said on Jan. 23.

The gauge of consumer sentiment fell to 81 in January. Any figure above the 100 mark indicates an optimistic outlook among consumers.

The index of households' current financial situation was up 1.7 percent monthly, while the index of households' financial situation in the next 12 months declined 1.7 percent.

General economic situation expectations of households rose 3 percent in January, after advancing 4 percent in December 2024.

This year will be a test for Turkish consumer companies as inflation moderates further, while minimum wage growth is just enough to cover the average inflation expectation for the year, HSBC analysts said in a recent report.

Rising challenges on disposable income imply selective behavior and carefully measured spending from consumers, putting pressure on volumes, transactions and/or basket size growth for consumer companies, they said.

"We see staples as resilient, and organized food retailers as better placed than others, but outperformance will depend on company-specific strengths."

The outlook for food and beverage producers is a mixed bag, given the scale of their international operations; the base should turn supportive for (volume) growth in a few countries, they said.

Wage pressures are more manageable compared to 2024, but opex management will remain challenging for a couple of quarters, according to HSBC analysts.