Slowdown in consumption categories draws attention

While the Turkish economy recorded a growth of 5.9 percent in the third quarter of the year compared to the same quarter of the previous year, the limited growth observed on a quarterly basis pointed to a cooling in domestic demand.

According to data from the Turkish Statistical Institute (TÜİK), quarterly growth remained at 0.3 percent in the third quarter of the year. The expectation of institutions participating in the Bloomberg HT survey was for quarterly growth to be 1 percent. In the second quarter, when loose monetary policy was in effect, quarterly economic growth was recorded at 3.3 percent.

Household consumption recorded its first contraction on a quarterly basis since the last quarter of 2020. According to TÜİK data, domestic demand contracted by 1.7 percent in the third quarter compared to the previous quarter.

When looking at the details of domestic demand, it was observed that all categories except for durable goods declined.

Demand for durable goods increased by 17.7 percent in the third quarter of the year. In the second quarter, which included the elections, a 7 percent annual growth had been observed in this category.

Semi-durable goods, such as clothing, recorded their lowest growth in the last five quarters in the third quarter of the year, at 12.4 percent. The increase in non-durable goods also showed its slowest growth since the first quarter of 2021, at 7.7 percent in the third quarter of the year.

A similar picture was observed on the services side. An annual increase of 7.5 percent was seen in services in the third quarter.

News Source: 12punto