The April 2021 results of the Construction Materials Industry Composite Index, which is regularly published every month by the Turkish Construction Material Industrialists Association (Turkey IMSAD), has been announced.
The Composite Index, which stated that the traditional stagnation effect of the month of Ramadan was limited, included the following information: The Composite Index, which continued to increase in April, thus carried its rise to the fifth month. The activities, which are the driving forces of the Composite Index, continued to grow in April. While confidence declined in April, there was a limited increase in expectations. Due to the demands highlighted in the domestic market before the lockdowns that started in May, there was an increase in production. The Composite Index, which increased by 0.30 points in April, thus reached 77.31 points, very close to the January 2019 level.
The Activity Index increased by 1.8 points in April
After the recovery in February and the jump in March, activities continued their growth momentum in April. The Activity Index increased by 1.8 points in April compared to the previous month. Activities grew in almost all lower branches. The Activity Index remained at its highest level since October 2018. Domestic sales increased with the orders brought forward in April. Exports also rose significantly. Markets picked up with vaccination optimism. There was a significant increase in production in April. High capacities were used. Turnover was high in April due to the leaps in domestic sales and exports. The increase in export prices continued.
The ongoing activities in the construction sector continued to have a positive impact on the construction materials industry. The growth momentum in the activities is expected to continue in the coming months with the gradual opening and seasonality.
Confidence Index declined in April on a limited scale
The Confidence Index declined slightly in April. The cautious increase in the Confidence Index that started after November 2020 was interrupted in March and April. Despite the growth in activities, there was a decline in the Confidence Index in April. The decline in the Confidence Index was mostly due to the third wave of the pandemic. Confidence level decreased by 0.38 points in April compared to the previous month. The Confidence Index continued to remain fragile.
Confidence in the Turkish economy declined slightly. Confidence in the construction sector also declined to a limited extent. Confidence in domestic markets stagnated in April. The only sub-index that increased in April was the confidence in export markets. The Confidence Index stagnated in March and April. Gradual opening steps and seasonality are expected to support trust in the coming months.
Increase in Expectation Index continued
The Expectations Index continued to increase in April at a limited rate. Expectations for the economy and the sectors weakened due to the fragilities in the economy. Expectations regarding the activities were in an increasing trend. The prospect of possible gradual reopening in the summer has bolstered expectations for a business recovery. The Expectation Index, which increased by 0.3 points in April compared to the previous month, thus continued its increase in the new year, albeit slower.
There was a decline in expectations for the Turkish economy. While the increase in domestic orders for the next three months remained limited in April, there was a significant increase in export orders. Production expectation for the next three months showed a strong increase in April. Production expectations strengthened, especially due to the increase in international orders received.
Vaccination and developments in the pandemic are among the main determinants of expectations. With the results to be taken with lockdown and restriction measures, the course of the pandemic continues to shape expectations. As the summer months come, which are seen as a busy season, the developments in the Composite Index will be determined by the course of the pandemic, the results of the restrictions, and the level of activities in the construction sector.
