April 2019 Results of the Construction Materials Industrial Index, published regularly every month by Construction Materials Producers’ Association of Turkey (IMSAD Turkey), are published. Not having reflected the dynamism so expected in April 2019, Industrial Index has revealed following developments: Having shown an increase in March for the first time for 12 months, Construction Materials Industrial Index went again down in April. Falls in 3 sub-index of
Industrial Index also led to 1.11 point decrease in Industrial Index in April 2019, compared to last month.
Activities retreated in the most dynamic month of the year
Increasing buoyancy starting for the first time in March after 7 months, recovery has stopped short. Despite of positive contribution of the seasonality, almost entire activities recorded limited falls. The Activity Index fell by 0.7 point in April compared to the last month. Domestic sales maintained its decreasing trend in April, whilst export saw a limited increase. While export remains the sole activity showing an increase, production saw a limited regression. Turnover decreased in April, compared to the increase in March. Foreign sales prices has also witnessed a limited regression and collection cycle continued to extend longer.
Decreasing domestic orders led to a lowered production expectations
Expectations got weakened due to the political and economic uncertainties and the regressed activities. Expectations lowered by 1.3 points in April compared to last month, 24.2 points compared to April of last year. Domestic orders received for the next quarter in the construction materials industry has witnessed a decrease, export orders is the sole area showing an increase in April. The production expectations of the next quarter also showed a decrease. Such regressed numbers of domestic orders are contributed with the Ramadan month and long public holiday.
3rd Quarter for Recovery
Industry Index and sub-indexes are regressed in the April where they have traditionally reached their peak points. While the regression has been contributed by the deteriorated financial indicators, the most important and foremost factor was the political and economic uncertainties. While it remains short to see the effect of the seasonality, the recovery of indexes may be seen in the 3rd quarter at the earliest.
