THBB "Ready-Mixed Concrete Index" June 2019 Report Announced

THBB (Turkish Ready Mixed Concrete Association) has announced its June 2019 Report of Ready-Mixed Concrete Index. All index values in the June 2019 Report indicate that the current and expected level of activity in the construction sector is insufficient. Indices have been declining since April. Beyond confidence in the economy, uncertainty in the construction sector has lowered expectations. According to the June 2019 Report, all three indices decreased compared to the same period of the previous year. In particular, the relatively sharp decline in the Confidence Index stemmed from both macroeconomic developments and the contraction of the construction sector's current constraints. The report revealed no signs of recovery in the sector. Evaluating the results of the June 2019 Report of Ready-Mixed Concrete Index, European Ready-Mixed Concrete Association (ERMCO) and THBB Chairman Yavuz Işık stated, "All index values indicate that the current and expected level of activity in the construction sector is insufficient. All three indices decreased compared to the same period of the previous year. There is no sign of recovery in the sector." Yavuz Işık, commenting on economic developments, said, "The decline in inflation figures, particularly food inflation, may lead to movement in inflation-indexed housing loans. However, we do not expect this to have a significant impact on the construction industry in the short term. In the July meeting, the Central Bank's probability of an interest rate cut, which increases with falling inflation, will be the main determinant of housing loans. We do not expect a possible rate cut in July to be sufficient to trigger credit volume growth, which is far more sensitive to interest rates than other loan types such as housing loans. As long as the construction sector cannot see its future, unfortunately, it will not contribute to Turkey's growth," he said.