Turkish Ready-Mixed Concrete Association (THBB) announced the "Ready-Mixed Concrete Index" 2023 September Report, which shows the current situation and expected developments in the manufacturing and service sectors related to construction, which is eagerly awaited every month.
Following the rise in August, the Activity Index moved downwards in September, but still maintains its position above the threshold value. It is seen that the Expectation and Confidence Indices have fallen below the threshold value. Following this decrease seen in all index values, the Ready-Mixed Concrete Index decreased to the threshold value.
Turkish Ready Mixed Concrete Association (THBB) reveals the current situation and expected developments in the construction sector and related manufacturing and service sectors in Turkey with the Ready Concrete Index announced every month. This Index, which is about ready-mixed concrete, which is one of the most basic inputs of the construction industry and is used in construction without being stocked in a short time after its production, is a leading indicator that reveals the growth rate of the construction industry.
According to the Ready-Mixed Concrete Index 2023 September Report, the Activity Index moved downwards again in September after the rise in August, but still maintained its position above the threshold value. The Expectation Index, which bottomed out in July, moved steadily in September after the rise in August, and the index value still continues to be positioned below the threshold value. While the Confidence Index was close to the threshold value in August, it fell below the threshold value with a limited decrease in September. Following this decrease seen in all index values, the Ready-Mixed Concrete Index decreased to the threshold value.
Last September, all indices increased compared to the same month last year. The highest increase was in the Activity Index, and the smallest increase was in the Expectation Index. It should not be ignored that the Expectation and Confidence Indices continue to remain below the threshold value despite the increase. Since the status of all 3 indices is positive compared to the same month last year, the Ready-Mixed Concrete Index has also increased.
Evaluating the results of the report, Turkish Ready-Mixed Concrete Association (THBB) Chairman Yavuz Işık stated that the Activity Index remained above the threshold value despite the downward movement in September, and added: "After the decrease in all index values, the Ready-Mixed Concrete Index decreased to the threshold value." said.
Making evaluations about the Turkish economy and the construction sector, THBB President Yavuz Işık said, “As of the end of May, with the end of the election atmosphere and the policy change of the new economy management, efforts have begun to combat demand on the one hand and cost inflation on the other. The most obvious result of this has shown itself in rising interest rates. The increase in the interest rate accelerated when the increases in the policy interest were combined with the steps taken towards the liquidation of the Exchange Rate Protected Deposit (KKM) system. When the decrease in banks' appetite for lending is added to all this, access to finance has become even more difficult. The weakening of not only commercial loans used by construction industry players but also housing loans will put pressure on the construction industry in the coming period. Consumer loans have slowed down since the beginning of June. The weekly increase rate in consumer loans, which grew negatively on a weekly basis for 4 weeks starting from June, remained below 1%. Commercial loans, on the other hand, slowed down at a later date compared to consumer loans, approximately at the end of July. Commercial loans, which have shrunk twice on a weekly basis, have been in a steady increasing trend for the last 2 weeks. Access to finance should be facilitated to ensure a moderate growth process while combating inflation. . "A sector such as the construction sector, which is the dynamo of the country's economy and supports employment, must continue on its way with all its components." he said.