Economy in Turkey: Rise in Economic Confidence Index Observed in October 2025

Despite ongoing challenges such as inflation, Turkey is experiencing some positive economic signals. Recent improvements in export figures and a reduction in the budget deficit have brought satisfaction to top economic officials.

One of the most encouraging developments came from the economic confidence index, which rose slightly in October. According to data released by the Turkish Statistical Institute (TÜİK), the index increased by 0.3% month-on-month, reaching 98.2 — its highest level since March 2025.

In comparison, September’s index stood at 98.0, showing a mild yet steady upward trend in market sentiment.

Sectoral Details

The breakdown of the index reveals varied performances across sectors.

While the consumer confidence index fell by 0.3% to 83.6, the real sector (manufacturing) rose by 1.2% to 102.0.

The services sector dipped by 0.3% to 110.7, whereas retail trade confidence jumped by 3.7% to 113.2.

The construction sector, on the other hand, declined by 5.3% to 83.7.

Defense Industry Adds Momentum

Aparat from positive developments in above sectors, a significant contributor to the country’s recent rising momentum has been Turkey’s defense and aerospace industry, which continues to expand both technologically and commercially.

Advanced unmanned aerial vehicles (SİHAs) — recognized globally for their efficiency and innovation — have played a key role in boosting exports and attracting international interest.

This progress not only strengthens the nation’s industrial base but also enhances its global reputation as a reliable defense technology producer.

A Sign of Balanced Recovery

Altogether, the October results reflect a cautiously optimistic outlook for Turkey’s economy. With rising confidence, diversified industrial strength, and continued innovation in the defense sector, the country is moving toward a more stable and resilient economic path — reaching its highest confidence level since March 2025.

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