THBB announced the August 2019 Report of the Ready-Mixed Concrete Index, which is highly anticipated each month. Although there was an increase in construction activities, this level remained below the desired level. In the Report, which shows that the sector players continue to have confidence problems in the construction sector, the expectation regarding the coming period has increased, yet remained below the threshold.
According to the August 2019 Report, the three other indexes excluding confidence increased compared to the same period of the previous year. In particular, the limited decline in the Confidence Index indicates that the current bottleneck in the construction sector has not disappeared yet. In August, compared to the same month of the previous year, there was a slight increase in activity, but this increase turns out to be insufficient.
“ The speed of economic activity will increase as the confidence environment is appropriately established in the economy ”
Evaluating the results of the August 2019 Report on Ready-Mixed Concrete Yavuz Isik, Chairman of the European Ready-Mixed Concrete Association (ERMCO) and THBB Board of Directors explains, “the sector players still have confidence problems in the construction sector. In August, compared to the same month of the previous year, there was a slight increase in activity, but this increase turns out to be insufficient. The weak outlook in the construction sector has left its sixteenth month behind.”
Sharing his suggestions for the revival of the construction sector, Yavuz Isik comments, “It is clear that the construction sector contracted significantly in the second quarter growth. In order to reverse this trend, the Central Bank’s interest rate cut by 425 basis points in July and the 325 basis point cut in this month should also be reflected in the banking sector. Not only public banks but also private sector banks must assume responsibility and they should reflect the interest rate reduction decisions to their figures. Low interest rates are essential for the future of the construction sector. Additionally, from the recent figures, we see that both consumer and market players’ confidence in the economy has increased Although not yet at the desired level, the economic activity, particularly in construction, will increase as the confidence environment has been appropriately established.
