THBB (Turkish Ready Mixed Concrete Association) has announced June 2019 Report of Ready-Mixed Concrete Index. In June 2019 Report, all index values indicated that the current and expected level of activity in the construction sector is not sufficient. Indices have been downward since April.
Beyond the confidence in the economy, the uncertainty in the construction sector has lowered the level of expectations.
According to the June 2019 Report, all three indices decreased compared to the same period of the previous year. In particular, the relatively high decline in the Confidence Index stemmed from both macroeconomic developments and the contraction of the construction sector’s current bottleneck.
The report revealed no signs of revival in the sector.
Evaluating the results of 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 not sufficient. All three indices decreased compared to the same period of the previous year. There is no sign of revival in the sector. ”
Yavuz Işık, evaluating economic developments, said, “The decline in inflation figures, especially with food inflation, may lead to a 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 July meeting,
Central Bank’s probability of interest reduction, which increases with falling inflation, would be the main determinant of housing loans. We do not expect a possible rate cut in July that enough to trigger the credit volume, which is much more sensitive to the interest rate than other types of loans, such as housing loans.
The construction sector, as long as it can not see its future, unfortunately, will not contribute to Turkey’s growth” he said.
