Türkiye's economic morale improved in August to approach the threshold that indicates optimism and hitting a five-month high, according to official data released on Thursday.

The economic confidence index rose 1.7% to 97.9 points in August from 96.3 in July, the Turkish Statistical Institute (TurkStat) said.

This marked a rebound from July's 0.4% monthly decline.

The reading was also strongest since March, when the index was at 100.8.

The real sector confidence index, reflecting confidence in the manufacturing industry, rose 1.7% to 100.6 and the services confidence index rose 1.1% month-over-month to 111.1 in August.

The consumer confidence index also increased by 0.9% to 84.3, and the retail trade confidence index rose 0.8% in the month, reaching 108.8.

On the other hand, the construction confidence index dropped 4% to 85.3 in August.

The economic confidence index, a key indicator of the overall economic situation, ranges from 0 to 200.

A reading above 100 indicates optimism about the overall economic outlook, while a value below 100 reflects a more pessimistic assessment.