Turkey Ready Mixed Concrete Association (THBB), announced its “Ready Mixed Concrete Index” March 2020 report which is expected every month with a great enthusiasm and which sets out the current situation and the anticipated developments in the construction sector as well as manufacturing and services sector associated therewith.
Turkey Ready Mixed Concrete Association (THBB) sets out the current situation and the anticipated developments in the construction sector as well as manufacturing and services sector associated therewith with its “Ready Mixed Concrete Index” issued every month. This Index, related to ready mixed concrete which is one of the most basic inputs of the construction industry and is also used in constructions without being stocked within a short period of time after its production, is one of the most important indicators of the growth rate of the construction industry.
THBB announced its “Ready Mixed Concrete Index” March 2020 report which is expected every month with a great enthusiasm. According to the report, there was an acceleration in the Activity Index, but the Expectation Index decreased to the lowest value of 45 months when the index started to be applied. There was a serious decline in the Confidence Index.
Evaluating “Ready Mixed Concrete Index” March 2020 report, the Chairman of the European Ready-Mixed Concrete Association (ERMCO) and THBB Yavuz Işık expressed that“We expect that the acceleration in concrete activities will disappear in the coming period. We can compare the rapid concrete pouring in March to the period before the holidays. The historical decline in our expectation index shows us that construction is preparing for a long-term recession”.
Yavuz Işık also stated regarding the ready mixed concrete that, unlike other sectors that provide input to construction, the ready mixed concrete sector is the sector that does not have the opportunity to export, has to work entirely in the domestic market, and is the first sector to be affected by the contraction in construction. After 18 months of backtracking in the sector, the economic effects of the COVID-19 pandemic began to be felt deeply in our country just when the expectations turned positive.”
Indicating that the ready-mixed concrete sector is the sector with the third lowest capacity utilization rate according to the March data of Central Bank, Yavuz Işık said, “We are at the first stage of the COVID-19 outbreak and are at the head of the manufacturing industry sectors that will be directly affected. In this context, it is of great importance for the sector to evaluate the ready-mixed concrete sector, which is the most basic sector that provides input, in this context, just as the construction sector has been evaluated in a force majeure. In this regard, we conveyed our request to be included in the evaluation of our sector within the force majeure to our Ministry of Treasury and Finance. ”.
Graphic-1: Index Values
Graphic-2: Change in Index Values (Compared to the Same Month of the Previous Year,%)
