The Economic Confidence Index surged 6.8 percent to 91.5 in February compared to last month, TurkStat said in a statement. "This increase in the economic confidence index stemmed from the increases in services, the real sector, construction, and retail trade confidence indices," the statement said.
"The recovery in the economic confidence index in February is the reflection of incentives and measurements taken by the government, especially in the retail and construction sectors," said Deniz Cicek, an economist from QNBFinansBank
The sub-index for the real sector climbed 6 percent to 106.5 in February, while services also surged 6.1 percent to 92.9. The retail trade confidence and construction confidence indices both rose 2.1 percent to 97.9 percent and 76.4 percent respectively in the same period. "The increase in real sector confidence shows us the recovery in exports to higher levels," Cicek said.
Muammer Komurcuoglu, an economist from IS Investment, took a similar tone as Cicek, adding that PMI data, expected to be announced soon, would be important for a clearer view in the month's data. However, the sub-index tracking consumer confidence fell month-on-month 1.6 percent during the month to 65.7.
The index slipped last December and in January by 3.9 percent and 18.5 percent respectively. The Economic Confidence Index is seen as a significant reading of the economic course as it is a composite index that aggregates sub-indices of consumer confidence, real sector services, retail trade and construction confidence indices, reflecting an overall sentiment of health of the economy.