The Turkish consumer confidence index bounced back in July after hitting a record low a month earlier as surging inflation and a drop in the lira weighed on sentiment.

The index rose by 7.4% to 68 points in July, data from the Turkish Statistical Institute (TurkStat) showed Wednesday, after hitting a record low of 63.4 points in June.

The index is a vital gauge of the economy’s overall situation, indicating people’s sentiments on financial standing and the general economic situation, along with expenditure and saving tendencies.

The biggest improvement was seen in the general economic situation over the coming 12 months, with that confidence index rising 15% from a month earlier to 70.9, the data showed.

The financial situation expectation of households over the next 12 months rose 12.2% to 67.2.

The financial situation of households, at present, went up 4.2% to 46.4 in July.

The index for the assessment of spending money on durable goods over the next 12 months went down by 4.9% to 88.8.

A confidence level below 100 reflects a pessimistic outlook, while a reading above 100 indicates optimism.

Confidence had plunged in 2020 due to fallout from the COVID-19 pandemic before a rebound that began to fizzle out in October of last year.