Turkey Ready Mixed Concrete Association (THBB) announced the “Ready Mixed Concrete Index” June 2018 Report which is waited impatiently every month and revealing the current situation and expected developments construction and construction related manufacturing and services sector. According to the report, the Activity and Expectations Index declines compared to the previous month, while the confidence index is on the rise. The Confidence Index begins to rise with the belief that there will be a revitalization in the sector as a result of the decisions and measures to be put into practice in the construction sector by the new system after the elections.
The Ready Mixed Concrete Activity Index declines by 1.7% in June compared to the same month of the previous year. Only 25% of companies surveyed said their sales increased in June. The rate of those who said that there were no negative developments in recorded orders was 29%.
The Ready Mixed Concrete Expectation Index, which is important in terms of showing possible developments in the construction sector in the coming period, was 2.2% below the same month of the previous year. The rate of those who did not expect a negative improvement in their sales in the next three months was 53%.
Indicators point to the slowdown in construction, but the sector is hopeful …
Evaluating the results of the Ready Mixed Concrete Index June Report, European Ready Mixed Concrete Organization (ERMCO) and THBB Chairman Yavuz Işık expressed that the recession seen in activity index in May continued as well as in June. Stating that the developments in the construction sector are not positive in the second quarter of the year, Yavuz Işık said: “The effect of the temporary measures taken to develop the construction sector remained limited on the start of new constructions and the completion of existing constructions. The implementation of low housing loans, already running through public banks, has created significant momentum in the market at the point of housing sales. However, the fact that public banks will put an end to low interest rates on housing credit creates an expectation of a significant reduction in mortgage sales. Any precautions to reduce interest are therefore important. It is regrettable that until now the private banks have not contributed to the process achieved with the sacrifice of the public banks. At this point, the decisions and measures of the new economy management for the construction sector are becoming important.”