Türkiye’s economic confidence showed a modest improvement in June, with the overall economic confidence index rising to 98.9, according to data released by the Turkish Statistical Institute (TurkStat) on Monday.

The index, which stood at 97.2 in May, increased by 1.8% month-on-month, signaling a gradual improvement in overall economic sentiment across key sectors.

TurkStat data showed that consumer confidence rose by 2.5% in June, reaching 87.9. Despite the increase, the index remained below the neutral threshold of 100, indicating continued caution among households regarding economic conditions.

The real sector confidence index, which reflects sentiment in the manufacturing industry, increased by 1.0% to reach 102.0, moving slightly above the neutral level and suggesting a more positive outlook among industrial producers.

In the services sector, confidence rose by 1.4% to 110.5, while retail trade confidence increased marginally by 0.3% to 112.8, indicating relatively strong expectations in trade-related activities.

The construction confidence index also recorded an increase of 1.1%, reaching 83.0 in June. However, the sector remained well below the 100-point threshold, reflecting continued weakness and uncertainty in construction activity.

While the overall rise in the economic confidence index points to a gradual recovery in sentiment, the data reflects a mixed economic outlook across sectors, with stronger performance in services and retail contrasted by weaker consumer and construction confidence.

Economists often interpret values below 100 as indicating pessimism, while readings above 100 suggest optimism. The latest figures therefore point to a cautiously improving but still uneven economic environment in Türkiye.

TurkStat regularly publishes confidence indices as part of its monthly economic indicators, which are closely monitored by policymakers and markets for signals about economic momentum and expectations. (ILKHA)