Economic confidence index decreased by 15.4% compared to previous month decreasing from 83.9 to 71 in September. This decrease in economic confidence index stemmed from the decreases in consumer, real sector, services, retail trade, and construction confidence indices.
Consumer, real sector, services, retail trade, and construction confidence indices decreased to 59.3, 90.4, 79.4, 88.5 and 57.3 in September, respectively.
What is the economic confidence index?
The economic confidence index is a composite index that encapsulates consumers' and producers' evaluations, expectations and tendencies about the general economic situation. The index is combined by means of a weighted aggregation of sub-indices of consumer confidence, seasonally adjusted real sector (manufacturing industry), services, retail trade, and construction confidence indices.
In the calculation of economic confidence index, each sectoral weights are not directly applied to the five confidence indices themselves but to their normalized individual sub-indices series as equally-distributed in each sector. Within this scope, totally 20 sub-indices of confidence indices for the consumer, real sector, services, retail trade, and construction are used in the calculation.
Sub-indices used in the calculation of economic confidence index are calculated with data collected in the first two weeks of each month.
It indicates an optimistic outlook about the general economic situation when economic confidence index is above 100, whereas it indicates a pessimistic outlook when it is below 100. (ILKHA)