* Unemployment down for third month to 13.6 pct
* Non-farm unemployment rate falls to 17 pct
* One in four youths unemployed
* Consumer confidence falls 3.4 pct in July (Adds analyst comment, details, background)
By Daren Butler
ISTANBUL, Aug 17 (Reuters) - Turkish unemployment fell for the third consecutive month to hit 13.6 percent in the April to June period, data showed on Monday, but a fall in July consumer confidence showed recovery prospects were uncertain.
Turkey's economy has sunk into recession this year, contracting 13.8 percent in the first quarter. As foreign and domestic demand dropped, many companies cut output and laid off workers, prompting the government to implement stimulus measures to encourage job creation.
The unemployment rate, measured on a three-month moving average, has fallen steadily in response since hitting a record high of 16.1 percent in January-March.
"These figures can be viewed as reflecting the recovery signals in the Turkish economy in the April-June period in the field of employment," said HSBC economist Fatih Keresteci.
"However, we have serious concerns on whether the recovery signals will be lasting," he added.
Separately, the statistics office announced consumer confidence in Turkey fell 3.40 percent to 82.37 points in July.
In June, the index rose 2.39 percent to 85.27 points month-on-month. July's fall was the first after a steady rise since hitting a low of 68.88 points in November 2008.
Turkish financial markets showed little reaction to the
data, with the lira
The Turkish Central Bank is expected to make its 10th successive interest rate cut at its monetary policy committee meeting on Tuesday in a fresh bid to inject momentum into the economy.
The bank cut its benchmark borrowing rate by 50 basis points to an all-time low of 8.25 percent last month, and has already more than halved official rates since last November.
The unemployment rate stood at a revised 9.2 percent in the April-June period last year.
The Turkish Statistics Institute said in a statement non-farm unemployment rate fell to 17.0 percent from 18.2 percent a month earlier.
Youth unemployment fell to 24.9 percent in the April-June period from 26.5 percent a month earlier. (Reporting by Daren Butler in Istanbul and Selcuk Gokoluk in Ankara; editing by Patrick Graham)