Istanbul, Oct 27 () - Economic confidence index, a composite index encapsulating evaluations, expectations and tendencies of consumers and producers about general economic situation, rose by 13.0 percent in Oct., and bounced from the bottom level seen in Sept.
According to Turkstat data, the rise in economic confidence index to 81.48 stemmed from the increases in consumer, real sector (manufacturing industry), retail trade and services confidence indices.
The index has declined to 72.1 in Sept., over policial uncertaintiy, security concerns and depreciation in lira, and reached the lowest level since Jan. 2012, when Turkstat began to measure the index.
Economic confidence index indicates an optimistic outlook about the general economic situation when the index is above 100, on contrary it indicates a pessimistic outlook when it is below 100.
The index is combined by means of a weighted aggregation of normalized sub-indices of consumer confidence, seasonally adjusted real sector (manufacturing industry), services, retail trade and construction confidence indices.
The index considered a leading indicator, as it provides significant data regarding the growth in economy, earlier than many other economic indicators.