June 2020 Report of “Ready Mixed Concrete Index” made public by Turkish Ready Mixed Concrete Association (THBB). In Ready Mixed Concrete Index of June, operations of the construction sector reached the highest level after a long time.
Turkish Ready Mixed Concrete Association (THBB) reveals the current position and anticipated developments in the construction sector as well as related production and service sectors in Turkey in Ready Mixed Concrete Report published monthly. This Index on relation to ready mixed concrete, one of the major inputs of the construction sector and also, used immediately in constructions after its production without stocking, is one of the most important indicators displaying the growth rate of construction sector.
THBB disclosed June 2020 Report of Ready Mixed Concrete Index, which is anxiously awaited every month. According to the report, Ready Mixed Concrete Activity Index reached a historical peak in June, and accordingly, June was the busiest month for activities of the construction sector after a long time. Index data clearly displays that in the normalization process starting in June after pandemics, interest in housings reached a high level due to reduction in housing loan interests notably by the state banks. In addition to Activity Index, Expectation Index as well as Confidence Index also displayed an upward trend, and exceeded the threshold. Having all three indexes going over the threshold proves that June was highly productive in every aspect for the construction sector.
In comparison to the same period of the previous year, there was a substantial increase in Activity Index. Along with the normalization schedule in May, expectations of starting a recovery in overall economy and the construction sector took place in June, and Activity Index reached the historical apex. Despite at a lesser level, there is a substantial uptrend in the confidence of the sector. Although the lowest increase rate was observed in Confidence Index, increases in both expectation and confidence indexes indicate that expectations of the sector greatly improved.
“Ready Mixed Concrete Activity Index in June reached the historical apex”
Assessing the outcomes of the report, Mr. Yavuz Işık, Chair of Turkish Ready Mixed Concrete Association (THBB) said, “Ready Mixed Concrete Activity Index reached a historical peak in June, and accordingly, June was the busiest month for activities of the construction sector after a long time. Index data clearly displays that in the normalization process starting in June after pandemics, interest in housings reached a high level due to reduction in housing loan interests notably by the state banks.”
Referring to the impact of the housing loan interests publicized by the state banks, Mr. Yavuz Işık said, “There was a substantial demand of housing loan in June due to credit facilities of the state banks for up to 15 years, 0.64 % per month for new buildings and 0.74 % for second-hand buildings. The Minister of Treasury and Finance informed that 101 thousands of people utilized 25 billion TRY for housing loans from the state banks in the first 20 days of June. Accordingly, a historical record of housing loan balance of banking sector was reached with 230.9 billion Turkish Lira. Such booming in demand also affected the supply side, resulting in starting of new constructions. In the days to come, should there be no decline in the success of Turkey in combating the pandemics, continuation of the acceleration in the construction sector would not be surprising. Construction sector will contribute to the national economy substantially in the second half of the year by compensating its earlier losses in employment and growth, in particular.”