Credit card interest rates affect these sectors
The increase in interest rates on loans and credit cards by economic management to reduce inflation reduced sales in many sectors.
According to data from the Turkish Statistical Institute (TUIK), retail sales decreased by 4.7 percent month-on-month in August, recording the sharpest contraction since the earthquakes centered on Kahramanmaraş. Data released yesterday revealed that retail sales volume declined by a further 0.7 per cent in September and the sales contraction continued, although it slowed.
The products that led this contraction were computers, computer hardware and software, and books, followed by household appliances, furniture, and fuel sales.
Source: TURKSTAT
THE DECLINE IN COMPUTER SALES ACCELERATED
Sales of computers and books, which declined 3 percent month-on-month in August, declined another 3.5 percent in September, recording the fastest decline in the past three months. Annual sales growth also decreased 17.1 points in September.
While sales of household appliances and furniture decreased by 2.5 percent month-on-month in September, the annual growth of these sales decreased by 5.4 points.
Fuel sales, which rose at a limited monthly rate of 0.1 percent in September, declined 1.5 percent compared with the same month a year earlier. This produced the most pronounced contraction in fuel sales in the last year.
Fuel sales increase for 11 months from October 2022; It experienced its first drop after 11 months in August 2023.
TESİD: CREDIT CARD INTEREST INCREASES ARE EFFECTIVE
Statements to sozcu.com.tr on the reasons for the contraction of retail sales Yaman Tunaoğlu, Chairman of the Board of Directors of the Turkish Electronic Industrialists Association (TESİD), He pointed out the consequences of the new economic leadership’s decision to reduce demand to reduce inflation after the elections.
Regarding the decrease in sales, Tunaoğlu assessed: “In an environment where inflation is very high, reducing purchasing appetite is a normal step taken to reduce consumption.”
Speaking with Sozcu.com.tr Mustafa Balcı, Chairman of the Board of Directors of the Turkish Furniture Manufacturers Association (MOSDER) Like Tunaoğlu, he noted that sales slowed down due to the effect of high credit card interest rates.
EXPECTATION ‘WILL LAST UNTIL THE FIRST HALF OF 2024’
Balcı pointed out that citizens made purchases in the previous months with concerns that there would be a price increase, so they expect sales to continue falling for a few more months.
Tunaoğlu also noted that the decline in sales is expected to continue until the first half of 2024, and that industry representatives have made plans for this expectation.