The economic confidence index advanced by 0.7 percent in December from November to 97.6, the Turkish Statistical Institute (TÜİK) has said.
Any figure above the 100 mark indicates an optimistic outlook regarding the general economic situation.
In the same month of last year, the index stood at 98.2.
Consumer morale deteriorated, but business confidence improved in December, according to the TÜİK data.
The sub-index measuring consumer confidence, which rose by 0.6 percent month-on-month, plunged 1.3 percent from November.
The real sector confidence index showed a 1.8 percent increase to 102 this month, after registering a 0.7 percent month-on-month drop in November.
TÜİK also reported that the confidence index for the services sector rose by 1.7 percent in December, which followed the 1 percent decline in the previous month.
In the retail industry,business morale continued to improve. The index for the sector advanced 4.5 percent after registering a 2.1 percent in November, while the confidence index for the construction sector, which rose 1.2 percent last month, once again increased by 1.2 percent in December.