Turkish Ready Mixed Concrete Association (THBB) released the “Ready-Mixed Concrete Index” May 2022 Report. It is reported that while the confidence of market players increased following the housing support package implemented last month it is seen that this does not have reflections yet in terms of expectations and operations.
THBB released the May 2022 Report of the Ready Mixed Concrete Index, which is eagerly awaited every month. According to the report, the Operations which were above the threshold value for the last 3-month period had moved down again and fell below the threshold value in May. The Confidence Index which had a marginal trend rose in May and was positioned above the threshold value. However, the Expectation Index is still far from the desired rate. The Combined Concrete Index demonstrated a downward movement, albeit limited, due to contraction in operations.
A decline is pronounced in other indices excluding the confidence index in May, compared to the same month of the previous year. It seems that the rise in operations could not succeed to continue in April. It shall be noted that the decline in the level of expectations is higher compared to the decrease in operations. While the confidence of market players increased following the housing support package implemented last month it is seen that this does not have reflections yet in terms of expectations and operations.
“It is understood once again that how important the Housing Finance Support, announced in May, is.”
Making evaluations on the results of the report, Chairperson of the Board of Directors of THBB, Yavuz Işık said, “The latest number of Building Permits as announced by TURKSTAT is important in terms of comprehending the route of the construction industry in 2022. It can be seen that the number of building permits decreased by more than 20% in the first quarter of 2022 compared to the same period of the previous year when the number of buildings, number of apartments and surface area data are taken into consideration. There was no decrease in the number of Building Permits in the 8 previous quarters, that is to sat, in the last 2 years”.
Continuing his statement words by making reference to the Housing Finance Support announced in May, Yavuz Işık said, “Data pertaining to the first quarter of 2022 show that Turkey got back to the 3rd quarter of 2020, when the impacts of the pandemic on the economy started to diminish. From this point, it is understood once again that how important the Housing Finance Support, announced in May, is.” The said packages are estimated to be the determinant of the route that the construction industry will follow in 2022 although they have not reached to a level that can have impact on the market yet.”