IMSAD Releases Composite Index Results for April

IMSAD Composite Index Releases April Results Türkiye İMSAD has released the April 2023 results for the Construction Materials Industry Composite Index. The Composite Index declined by 0.21 points in April, standing at 70.15 points. According to the report, the Confidence Index, which rose in February and March, stagnated in April, while the Activity Index experienced a limited decline due to a reduction in working days during the period. The Expectations Index, which moved into growth, showed optimism driven by developments in domestic and foreign orders.

First decline in the Composite Index after two months

According to the Türkiye İMSAD report, closely monitored by economic circles, the Composite Index, which recovered rapidly in March following the earthquake disaster, largely stagnated in April. The Composite Index declined by 0.21 points in April compared to the previous month, falling to 70.15 points. While the Composite Index substantially offset the negative effects created by the earthquake disaster, April was largely shaped by optimistic forecasts related to the elections.

Decline in working days limited activities

The report noted that activities contracted significantly in April, emphasizing sharp declines in domestic sales, production, exports and revenues. The main cause of these declines in construction materials industry activities was the reduction in the number of working days. While industrial activities in the sector showed contraction in the domestic market, export markets experienced renewed decline. As a result of these developments, significant declines occurred in nearly all sub-activity groups in April. The Activity Index declined by 1.5 points in April compared to the previous month. Domestic sales showed a significant decline in April compared to the previous month. Market slowdown was effective in the notable regression of exports in April. Accordingly, production also experienced a sharp decline in April. The reduction in working days due to the Ramadan Holiday limited production as well.

Confidence Index stagnates after two months of growth

According to the report, the Confidence Index, which rose in February and March 2023, stagnated in April. The stagnation of confidence in the construction materials industry during the period stemmed from declines in activities. Accordingly, the Confidence Index remained at nearly the same level across all sub-sectors compared to the previous month, showing no change. The confidence level stood at 34.27 points in April with only a 0.02 point increase compared to the previous month. The stagnating Confidence Index remained fragile and weak. Confidence in domestic markets declined only slightly in April, while confidence in export markets rose modestly.

Expectations Index shows optimistic trend

According to the report shedding light on the construction materials sector, the Expectations Index showed limited growth in April. The Expectations Index, which showed growth driven by developments in domestic and foreign markets, rose by 0.2 points in April compared to the previous month. Thus, optimism came to the fore in sector expectations. The report also emphasized that a very limited increase was achieved in domestic orders received for the upcoming three months. Export orders received for the upcoming three months also showed growth in April. While investment and employment expectations in the sector increased, production expectations for the next three months also rose.