Current construction works index rose by 2.3 points in April

Türkiye İMSAD Releases April 2019 Sector Report

The Türkiye İMSAD April 2019 Sector Report shows a 2.3-point increase in ongoing construction work, partly due to seasonal effects. The report noted that new construction starts will be important for further growth. From the Türkiye İMSAD April 2019 Sector Report, it is evident that the decline in construction materials industry production continued in February following January. Production in the first two months of the year declined 23.1 percent compared to the same period last year, resulting in a loss of nearly one-quarter of production. Other findings from the Turkish Construction Materials Manufacturers Association (Türkiye İMSAD) 'April 2019 Sector Report' are as follows: "Sharp contraction in construction materials industry production continued in February. Significant production decline was experienced in February as well as January. In February 2019, construction materials average industrial production shrank 22.0 percent compared to February 2018. Thus, the sharp contraction in production that began in the second half of 2018 continued into 2019. In the first two months of the year, production declined 23.1 percent compared to the same period last year, resulting in a loss of nearly one-quarter of production. The decline in construction work and sharp contraction in domestic demand were factors in the production decline. The volume increase in exports could not offset the production loss. In February 2019, production in 21 of 22 subsectors declined compared to the same month last year. High production losses were recorded in many important subsectors. In February, the highest production decline was in the ready-mix concrete sector at 47.8 percent. Parquet and floor covering production declined 35.2 percent, central heating radiators and water boiler production fell 39 percent. Ceramic coating materials production declined 17.1 percent. In February, production decline in 9 subsectors exceeded 20 percent. Refrigeration and ventilation equipment was the only subsector showing production growth at 3.6 percent."

Construction Sector Confidence Index Shows Recovery

The Construction Sector Confidence Index declined significantly in the second half of 2018. The previous year closed at its lowest level in December at 46.1 points. The Construction Sector Confidence Index showed a gradual increase during the first 4 months of 2019. Rising 15.1 points over the first 4 months, it climbed to 61.2 points, gaining 1.9 points in April. This recovery is certainly promising.

Ongoing Construction Work Level Increased in April

A sharp decline in the level of ongoing construction work was experienced from the second half of last year through January 2019. Significant increases were seen in February and March 2019. This upward trend continued in April, though at a slower pace. The information provided in the report on this subject was as follows: "Seasonality continued to contribute positively to the increase. The level of ongoing construction work showed a 2.3-point increase in April 2019. For further growth in current work going forward, new construction starts are expected to be important."