Turkish Ready Mixed Concrete Association’s (THBB) October 2017 Report on “Ready Mixed Concrete Index” has been announced, revealing the current situation of the construction sector and manufacturing and service sectors related to it as well as the expected developments. Ready-Mixed Concrete Index, a composite index rose by 0.2% compared with the same month of the last year while it approached very close to the threshold value in October.
Activity Index showed the highest rise in October compared with the same month of the last year
Ready-Mixed Concrete Activity Index value showed the highest rise following an increase by 0.5% compared with the same month of the last year. While 48% of survey participants said that the sales they made went up in October, 12% stated a decline in the sales compared with the last month. 44% stated increase in the registered orders.
Confidence Index stayed below threshold
Ready-Mixed Concrete Confidence Index value in October fell by 0.2% compared with the same month of the last year. Confidence Index staying below the threshold has indicated that the sector’s confidence in economy is still not at the desired level. 20% of survey participants considered new employment whereas 8% of them considered a new investment. 24% of the companies participating in the survey stated that the orders placed on suppliers would increase in the next three months.
Expectations Index rose by 0.2%
Having importance in terms of showing the course of construction sector, Ready-Mixed Concrete Expectations Index value in October increased by 0.2% compared with the same month of the last year. While 20% thought that the sales would go up in the next three months, 28% believed that they would decrease. 24% of the companies said that the input inventories would rise in the next three months.
“Housing sales hit a record high in the 3rd quarter”
Expressing his thoughts on the results of Ready- Mixed Concrete October Report, Yavuz Işık, Chairman of the Board of Directors at European Ready Mixed Concrete Organization (ERMCO) and THBB, said that the Activity Index which was on the decline in September due to holidays and the subsequent inactive period of around 10 days rebounded in October.
Yavuz Işık pointed out that the construction sector was predicted to show considerable performance in the 3rd quarter of the year. “Activity Index value has importance as it demonstrates how the construction sector began the last quarter of this year,” he said. “According to this, it made a dynamic entrance in the last quarter.” The fact that Turkey, after breaking a record with the sales of 180 thousand houses in the 3rd quarter, entered the fourth quarter with the same speed, suggests that no stagnation is experienced in construction sector contrary to expectations. The main factor that will determine the performance of the construction sector in the rest of the year is the matter of how the considerable amount of increase in the housing costs will affect the demand in the sector.”
