Economic outlook shows a minor dip in July's confidence levels
In July 2025, consumer sentiment and overall economic confidence in Ankara, Turkey, showed a slight decline. The economic confidence index decreased modestly to 96.3 from 96.7 in June, indicating a mildly pessimistic outlook since values below 100 reflect negative sentiment.
The construction sector confidence index, however, showed a notable increase of 2.2 percent in July 2025, reaching 88.8. This rise suggests growing optimism within the construction sector, despite the overall economic situation.
On the other hand, the consumer confidence index decreased by 1.8 percent between June and July 2025, falling to 83.5. This decline in consumer sentiment was a significant factor in the decline of the economic confidence index.
The real sector confidence index also showed a slight improvement, rising slightly by 0.5 percent between June and July 2025 to reach 98.9. Meanwhile, the services sector confidence index decreased by 0.8 percent to 110 in July 2025.
The retail trade sector confidence index, which was at 107.9 in July 2025, had a slower monthly decline compared to June 2025. The monthly decline in the retail trade sector confidence index slowed from 2.5 percent to 0.5 percent in July 2025.
These figures were reported by the Turkish Statistical Institute (TÜİK). The economic confidence index in June 2025 was 96.7, and the consumer confidence index increased by 0.3 percent in June 2025 before its subsequent decline in July.
The overall economic context remains challenging due to inflation and unemployment pressures affecting consumer attitudes. Monetary policy responses reflect these challenges: inflation had decreased from very high levels but remains elevated around 35%, with the Central Bank of Turkey maintaining a cautious approach to interest rates to balance inflation control and economic demand.
This environment contributes to cautious and somewhat pessimistic consumer and economic sentiment despite some stabilizing signs such as improved confidence in construction and manufacturing sectors.
- Despite the challenging economic context, with inflation and unemployment pressures affecting consumer attitudes, some businesses, like the construction sector, showed growing optimism, as the construction sector confidence index increased by 2.2% in July 2025.
- In contrast to the positive sentiment in the construction sector, the finance sector might be experiencing a different outlook with the consumer confidence index decreasing by 1.8% between June and July 2025, signaling a potential pessimistic scenario for some businesses and consumers.
