Turkish Ready Mixed Concrete Association (THBB) published the “Ready-Mixed Concrete Index” 2021 October Report. In the report, the expectation for the next period appears to be on the positive side, but just above the threshold.
The monthly Ready Mixed Concrete Index announced by the Turkish Ready Mixed Concrete Association (THBB), reveals the current situation, and expected developments in the construction sector and related manufacturing and service sectors in Turkey. This Index regarding ready-mixed concrete, one of the most basic inputs of the construction industry, used shortly after its production in construction without being stocked, is one of the most important indicators of the growth rate of the construction industry.
THBB has announced the October 2021 Report of the Ready Mixed Concrete Index, which is eagerly awaited every month. According to the report, the expectation for the next period appears to be on the positive side, but just above the threshold. While the Confidence Index continues at a negative level in October, the Ready Mixed Concrete Index moved upwards with an increase
in activity. It is noteworthy that construction activities continued to maintain their activity in August, September, and October.
When compared to the same months of the previous year, an increase is observed in all indices except activity in October. It is understood that the regression in the activity is also limited. The rise in the Expectation Index, shows that the sector has a positive expectation for the upcoming period. Although there is an increase in the Confidence Index, should be noted that the index is still below the threshold level.
“The market interest should decrease so that the desired level of demand for mortgaged house sales can be reached.”
Evaluating the results of the report, THBB Chairman of the Board Yavuz Işık said: “There was no decrease in the market rate, after the Central Bank cut the policy rate by 100 points on September 23. For the construction sector, interest seems to be of much more importance compared to other sectors. The market interest should decrease so that the desired level of demand for mortgaged house sales can be reached.”
Yavuz Işık stated that they expect the banking sector to reflect this decision to the market after the Central Bank’s decision to cut interest rates, considering the rise in indicators such as risk premium and exchange rate and said: “After the 200-basis point rate cut decision made on October 21, it was stated that “limited space remains for rate cuts until the end of the year”. This means that interest rate cuts may continue in the next 2 months, but at a slower pace. If these interest rate cuts are not reflected in the market in this regard, the actions to be taken in the rest of the year will also have no effect.”
