The Construction Sector Contracted in the Third Quarter

Turkey's Ready-Mix Concrete Association (THBB) released its September 2018 Ready-Mix Concrete Index report, which monthly tracks current conditions and expected developments in construction and related manufacturing and service sectors. The Activity Index posted the weakest performance of all months in September. With the decline in September, the slowdown entered its fifth consecutive month. Examining the third quarter overall using September figures, construction activities showed significant contraction compared to the previous year.

Activity Index indicates serious slowdown in construction activities

The Ready-Mix Concrete Activity Index declined 2.4% in September compared to the same month of the previous year. The share of surveyed companies reporting sales increases compared to the previous month reached 6%. Three percent of surveyed companies noted increases in recorded orders received.

Confidence Index continued its decline

The Ready-Mix Concrete Confidence Index showed a 2% decrease in September compared to the same month of the previous year. Six percent of surveyed companies stated that orders placed with suppliers would increase over the following three months.

Expectations Index fell below prior-year levels

The Ready-Mix Concrete Expectations Index for September, which is significant for indicating likely developments in the construction sector in coming periods, remained 2.4% below the same month of the previous year.

Construction activities contracted significantly in Q3

Yavuz Işık, Chairman of the Board of Directors of both the European Ready-Mix Concrete Association (ERMCO) and THBB, evaluating the results of the September Ready-Mix Concrete Index report, stated that examining the past three years of Ready-Mix Concrete Activity Index by third quarters shows serious decline in construction activity in the third quarter of 2018. Noting that all four index values declined compared to the same period of the previous year, Yavuz Işık said, "The Activity Index in particular, declining 2.4% compared to the same period of the previous year, demonstrates that serious slowdown in construction activities occurred in September compared to the prior year. The 2.4% decrease in the Expectations Index reveals that expectations have weakened significantly compared to the previous year. The Confidence Index also contracted in line with the other indices."