According to the November 2020 “Ready Mixed Concrete Index” report of Turkey Ready Mixed Concrete Association (TRMCA), upward trend in the construction sector has continued for 6 months. The report also shows that construction industry is driving not only growth but also employment.
TRMCA announced the November 2020 Report of Ready-Mixed Concrete Index, which is hotly-anticipated every month. The construction industry has been on the rise for 6 months as of November. Despite the slowdown in housing sales after the rise in interest rates, the construction sector continues on its way. The increase in Expectation and Confidence Indices is remarkable. Increase in both Expectation and Confidence Index is influenced especially by the stagnation in exchange rate and positive developments in global vaccination activities towards.
Construction activities remain high
In the Ready-Mixed Concrete Index November Report, there is a positive picture compared to 2019 in indices except activities. It is important that the Expectation and Confidence Index, although still negative in November, started to increase compared to the previous year. Although activity appears to have declined in November compared to last year, it is still the only index that is on the highest and positive side.
Evaluating the results of the report, TRMCA Board Chairman Yavuz Işık said, “The construction sector contracted by 8 quarters. The sector, with its – 2.7% of contraction in April, May and June has shrank more slowly compared to other dominant sectors when the pandemic showed its first economic effects, has displayed a performance parallel to the growth of economy in the third quarter. With the macro conjuncture that enabled the economy to recover in the third quarter, the construction sector also took action. We shared this fact with the public in our Ready-Mixed Concrete Index report we announced at the beginning of October. The Ready-Mixed Concrete Index, which is a leading indicator in terms of construction industry, shows that the construction sector has continued its performance in the last quarter, too. While unemployment rate is rising as a serious problem for our country as in the whole world, construction and related sectors support not only growth but also employment. According to the latest employment data, employment in the construction sector increased by 166 thousand people and reached 1 million 739 thousand.”
Evaluating the slowdown in economy, Işık stated “Rising interest, credit slowdown, stagnation in demand, slowdown in the economy along with measures taken against the pandemic have all affected the construction sector, too. However, November TRMCA Ready-Mixed Concrete Index figures show that the construction sector will close this winter on positive side despite all difficulties”.