Turk­ish con­sumer con­fi­dence re­bounds

Kuwait Times - - BUSINESS -

IS­TAN­BUL: Turk­ish con­sumer con­fi­dence re­bounded to a 19month high in Novem­ber, of­fi­cial data showed yes­ter­day, af­ter an elec­tion re­stored the AK Party’s sin­gle-party rule and eased po­lit­i­cal un­cer­tainty which had un­nerved in­vestors for months.

The in­dex jumped to 77.15 from 62.78 in Oc­to­ber, the Turk­ish Sta­tis­tics In­sti­tute said, hit­ting its high­est level since April 2014. It still shows a pes­simistic out­look, how­ever, with only a level above 100 in­di­cat­ing op­ti­mism. In Septem­ber, the in­dex hit a 6-1/2 year low on con­cerns that the Nov. 1 vote would lead to a coali­tion gov­ern­ment, pro­long­ing un­cer­tainty af­ter an in­con­clu­sive June elec­tion. But the AKP won nearly 50 per­cent, giv­ing it a strong man­date to push ahead with its re­form agenda.

In­vestor at­ten­tion has now turned to the make-up of a new cab­i­net, ex­pected to be un­veiled at the start of next week, with some con­cerned about the prospect of Pres­i­dent Tayyip Er­do­gan med­dling in eco­nomic and mon­e­tary pol­icy.

Er­do­gan has re­peat­edly called for lower in­ter­est rates to boost in­vest­ment and eco­nomic growth, which at around 3 per­cent is well be­low the lev­els sought to cut ris­ing un­em­ploy­ment. Yes­ter­day’s data showed there was a par­tic­u­larly sharp rise in the in­dex of expectations for the gen­eral eco­nomic sit­u­a­tion, up nearly 31 per­cent from Oc­to­ber to 105.9 in Novem­ber. — Reuters

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