Turkey's Economic Confidence Index Falls Below 100 Amid Regional War Fallout
Key Takeaways
- Economic Confidence Index at 97.9 in March, down 2.8% from February.
- Manufacturing sector bore the sharpest declines driving the index drop.
- Consumer confidence declined, with households showing weaker sentiment.
Confidence Index Dips
Turkey's Economic Confidence Index fell to 97.9 in March from 100.7 in February.
“The decline signals a moderation in overall sentiment, with the index falling below the neutral 100 threshold”
Consumer confidence fell 0.8 percent to 85.0.
Construction confidence declined 3.9 percent to 80.6.
Sectoral Drops
Retail trade confidence fell 2.0 percent to 113.6.
Services confidence edged down 0.5 percent to 113.2.
The drop in consumer confidence to around 85 points reflects fears of rising prices.
Analyst Commentary
The decline does not mean optimism is fading.
“Optimism in the Economic Confidence Index: Threshold surpassed in February”
The Turkish economy recorded growth of 3.6 percent in 2025.
The OECD forecasted growth of 3.3 percent for 2026.
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