The “Ready Mixed Concrete Index” 2022 November Report, published by the Ready Mixed Concrete Association of Turkey (THBB), provides information on the state of the construction industry as well as allied manufacturing and service sectors. Despite the fact that the Activity Index left behind its second month at the positive side in November, compared to the prior month, it appears to have declined slightly. The fact that the Confidence and Expectation indices, which remain below the threshold value, are at the same level suggests that the representatives of the construction sector have very modest expectations for the near- and long-term future.
The Ready Mixed Concrete Index, which is released every month by the Turkish Ready Mixed Concrete Association (THBB), provides information on the state of the construction industry in Turkey as well as anticipated changes in the linked production and service sectors. As ready-mixed concrete is one of the most essential inputs in the building industry and is employed in construction without being stockpiled for long periods of time after its manufacturing, this Index is one of the most significant indicators indicating the growth rate of the construction sector.
Although the Activity Index ended its second month on a good note, the November Ready Mixed Concrete Index Report indicates that it appears to have declined somewhat from the prior month. The confidence and expectation indexes persisted in being under the threshold. The fact that expectations and confidence are both at the same level suggests that members of the construction sector have very modest short- and long-term expectations. Due to the drop in its constituent indexes, the Composite Concrete Index appears to be a long way from recovery.
Except for activity, the other 3 indices seem to have declined compared to the same period of the previous year. Expectations, in particular, declined at a higher rate. Despite the limited increase in activity, the fact that confidence and expectation declined at a higher rate compared to last year is the clearest indicator that the activity in the construction sector is far from what it should be.
The chairman of the THBB Board of Directors, Yavuz Işık, commented on the report’s findings as follows: “The Activity Index declined marginally from the month before, although finishing its second month on a high note. The fact that the Confidence and Expectation indices, which remain below the threshold value, are at the same level suggests that the representatives of the construction sector have very modest expectations for the near- and long-term future.”
Yavuz Işık also commented on the data in the construction industry and said, “The third quarter growth results showed a 14.1% decrease in the construction sector. Since the worldwide crisis in 2009, this quarter’s shrinkage has been the most notable. Construction industry downturn, which decreased in each of the first three quarters of 2022, is quickening. Due to this performance, the construction industry no longer had the trait that made it the engine driving employment and economic growth in the past.”