Turkish Ready-Mixed Concrete Association (TRCA) published its hotly anticipated June 2019 report of “Ready-Mixed Concrete Index”. Revealing that all three indices showed a decline compared to the same period of the last year, the report points out that there has been no indications of recovery in the industry.
According to the June 2019 Report of Ready-Mixed Concrete Index, all index values shows that current and expected activity level in the construction industry remains short. Indices recorded a decline since April until today. Especially, slumped down Confidence Index has stemmed from both macroeconomic developments and the bottleneck that has currently plagued the construction industry.
Evaluating the results of June 2019 Report of Ready-Mixed Concrete Index, YavuzIşık, Chairman European Ready-Mixed Concrete Organization (ERMCO) and TRCA, said “All index values demonstrate that current and expected activity level in construction industry remains short. All three indexes showed a decline compared to the same period of the last year. There is no indications of recovery in the industry.”
“A potential reduction of interest in July is not expected to be a level that will trigger the credit volume such as mortgage which is much more sensitive to the interest rate.”
Evaluating economic developments, YavuzIşık said “A reduction observed in the inflation rates, particularly food inflation, may bring along a heightened activity in the inflation-indexed mortgages. However, we do not expect it create a significant effect on the construction industry in the short run. The increasing possibility of a reduction in the interest rates by Central Bank in the July meeting due to the decreasing inflation will be the main determinant for mortgages. A potential reduction of interest in July is not expected to be a level that will trigger the credit volume, such as mortgage, which is much more sensitive to the interest rate compared to other loan types. Construction Industry cannot unfortunately contribute to the growth of Turkey as long as it cannot see ahead.”
