The Turkish Ready-Mixed Concrete Association (THBB) released its 2017 August Report for its monthly Ready-Mixed Concrete Index where it measures the activities, confidence, and expectations of the sector. The Ready-Mixed Concrete Index reached the value 100.34 in August, increasing by 0.5 percent compared to the same month of last year.
The Turkish Ready-Mixed Concrete Association’s Ready-Mixed Concrete Index revealed the current situation and the expected developments in the construction and its related manufacturing and service sectors. The report showed that the Confidence Index, which had appeared above the threshold value for the first time in July 2017, remained below the threshold value in August. However, the composite Ready-Mixed Concrete Index suggested that the sector enjoyed a positive overall picture during August.
Activity Index becomes one of the most increasing indexes
The Ready-Mixed Concrete Activity Index rose by 0.6 percent in August compared to the same month of last year, becoming one of the most increasing indexes. 59 percent of the companies which took the survey said that they enjoyed increased sales figures in August whereas 14 percent said that their sales figures decreased compared to the previous month. The fact that over 50 percent pointed to an increase in the registered orders confirmed the dynamism seen in the activities.
Confidence Index gets the least increase
The value of the Ready-Mixed Concrete Index for July increased by 0.3 percent compared to the same month of last year. Although this is a positive increase, it is still low compared to other indexes. The fact that the index value is under the threshold suggested that the sector’s confidence in the economy was unsatisfactory. 11 percent of those who took the survey said that they were thinking about new employments whereas 15 percent said that they were thinking about new investments. In addition, 30 percent of the companies said that they were expecting for the orders given to suppliers to increase in the next three months.
Expectation Index increases by 0.6 percent
The value of the Ready-Mixed Concrete Expectation Index for August, which is an important data in showing the course of the construction sector for the upcoming period, increased by 0.6 percent compared to the same month of last year. 55 percent said that they were expecting an increase in sales in the next three months whereas 18 percent said that they were expecting a decrease in sales. Plus, 60 percent of the companies said that they would increase their input stocks in the next three months.
Ready-Mixed Concrete Index increases compared to the same month of last year
The composite Ready-Mixed Concrete Index, which was also affected by such developments, reached 100.34 in August. This means an increase by 0.5 percent compared to the same month of last year.
“The sector expectation is positive for the upcoming period”
Revealing his opinions on the results of the ReadyMixed Concrete Index August Report, European Ready-Mixed Concrete Organization (ERMCO) and Turkish Ready-Mixed Concrete Association (THBB) Board Chairman Yavuz Işık said that the Activity Index maintained its rising trend in August after July and that the sector seems to have a positive expectation for the upcoming period.
“The rise of the Activity Index in July and August exhibited the size of the construction sector’s progress. The construction sector will highly contribute to the growth of Turkey also in the third quarter if the index continues its rise in September following the dynamism seen in the construction sector in the first two months of the third quarter,” Yavuz Işık added.
