Turkish Ready Mixed Concrete Association (THBB) released the awaited “Ready Mixed Concrete Index” February 2019 Report which details the current status of and expected developments in construction sector and related production and service sectors. The report indicated that expectations for revival of construction operations are weak and the sector may only get back on its course through long-term permanent measures.
As indicated with February 2019 Report of Ready Mixed Concrete Index prepared by Turkish Ready Mixed Concrete Association (THBB) where all indices are below the thresholds; it is evident that the mobility in construction and related sectors is low and expectations for revival of construction operations are weak. Confidence Index being the lowest one among the others, became the most clear indicator that the sector may get back on its course through long-term permanent measures.
According to February 2019 Report of Ready Mixed Concrete Index, all 3 Index values followed a decrease path compared to the same period of the previous year. Though, a decrease occurred in the slowing down of the activities in the last 3 months. Decrease of both expectation and confidence indices by more than -1% compared to the same period in the previous year indicates an outcome that no increase other than seasonal effects shall be expected in operations in the upcoming period. “Construction sector may only get back on its course through long-term permanent measures”
Evaluating the results of Ready Mixed Concrete Index February 2019 Report, Yavuz Işık, Chairman of European Ready Mixed Concrete Organization (ERMCO) and THBB, said that expectations for revival of construction operations are weak and the sector may get back on its course through long-term permanent measures.
Evaluating the data regarding the construction sector, Yavuz Işık said “Weak domestic demand, high interest rates and economic uncertainty have been impacting the construction sector, and consequently the manufacturing industries which provide input to construction sector in the last 10-month period since April, 2018. Sharp decrease in housing sales is still ongoing despite the recent decreases in interest rates. While housing sales throughout Turkey decreased by -24.8% in January compared to the same month of the previous year, this case is way worse in mortgage housing sales. Mortgage housing sales throughout Turkey is only 6,537 with a decrease by -77.2% compared to the previous year. Share of mortgage sales among overall housing sales has regressed to single digits (9%).”.
