ITOSAM data evaluated: Macro indicators and the situation of the public

Assoc. Prof. Dr. Ali Bestami Kepekçi evaluated the data in ITOSAM's bulletin dated August 21, 2026, emphasizing that improvements in macro indicators are not reflected in citizens' lives and that the core issues are production, purchasing power, and cost inflation.

Headline Figures and Realities

While steps taken by economic management have provided improvements in certain indicators, it was stated that the main issue is not merely an increase in an index or a slowdown in the inflation growth rate.

Consumer Confidence and What Reflects on Pockets

The Consumer Confidence Index increased by 1 percent in August to 90.8, though values below 100 indicate a pessimistic outlook.

The index showing households' current financial situation remaining at the level of 75.4 indicates that citizens are still not satisfied with their economic situation.

Real Sector and Capacity Utilization

While the Real Sector Confidence Index rose to 102.4, the seasonally adjusted capacity utilization rate in the manufacturing industry declined to 73.5 percent in August.

The fact that a significant portion of the current production capacity is not utilized brings up the question of why factories are not producing more.

Producer Costs and Energy Burden

The Producer Price Index for Outbound Shipments (YD-ÜFE) increased by 29.67 percent annually in July, recording the lowest annual increase rate of the year.

In July, the monthly price increase in the energy group was 13.22 percent, and the annual increase was 77.63 percent, creating cost pressure.

Situation in the Housing and Rental Market

While housing prices increased by 25 percent annually in nominal terms, they declined by 5.1 percent in real terms.

The New Tenant Rent Index rose by 28.4 percent annually, reaching 32.4 percent in Istanbul, which set the public agenda.

Production-Oriented Long-Term Policy

Although there are some positive signals in the Turkish economy, concluding that structural problems have been resolved would be an incorrect approach.

There is a need for long-term policies that reduce energy and financing costs, support domestic producers, and bring idle capacity into the economy.