Turkish Ready-Mixed Concrete Association (TRCA) publishes the 2020 October Issue of “Ready-Mixed Concrete Index”. According to report, construction industry continues as of October to sustain the rising trend for the last 5 months, highlighting that industry will close the year positively despite serious economic difficulties.
According to the report of Turkish Ready-Mixed Concrete Association (TRCA), construction industry sustains the rising trend going on for the last 5 months. Ongoing projects are stepping up the gear in defiance of the stepped down house sales. Rising up since July, the expectations are in the trend of declining. In particular, rising exchange rates persistent despite the soared interest rates struck us as the underlying cause behind declining expectations. Confidence Index swings toward negative side. Expectation and confidence was plagued with downward trend in October.
Construction Industry is positive compared to last year
Outlook is positive compared to 2019 for construction industry according to all indices in the Ready-Mixed Index October Report. Monthly expectation and confidence has risen up compared to last year even though they remain in the negative side.
Construction industry will close 2020 in the positive side despite the serious economic difficulties
Evaluating the results of the report, Mr. Yavuz Işık, Chairman of TRCA, said “Economic activities are expected to slow down in the last 2 months of the year with the rising interest rates, credit crunch, stationary demand, new phase in Turkey-USA relations after USA elections, public measures against pandemic. The recent figures in the PMI, namely Purchasing Managers’ Index and capacity utilizations demonstrate that this slowdown has been in progress for a while. And it is impossible to expect construction industry to have immunity from these developments. However, October figures of TRCA Ready-Mixed Concrete Index points out that construction industry will close the year in the positive side despite all economic difficulties.”
Emphasizing that in the 3rd Quarter of the year, namely July-August-September months, construction industry has made a serious leap forward in the macro conjecture of Turkish economy favorable for the growth, Mr. Yavuz Işık notes “Results of October tell us that construction will demonstrate its potential in the last quarter, as well and surpass the expectations in its contribution in the economic growth.”