Türkiye IMSAD Construction Materials Industry Composite Index results announced

Image: IMSAD

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Construction Materials Industry Composite Index was 68.06 points in July.

Türkiye IMSAD prepared by the Construction Materials Industry Composite Index July 2024 results were announced. The Composite Index increased by 0.25 points in July compared to the previous month and rose to 68.06 points. The Activity Index increased by 1.8 points compared to the previous month and became 142.3 points. Confidence Index remained unchanged compared to the previous month and remained at 30.43 points. The Expectations Index continued to show a limited decline and decreased by 0.3 points to 54.7 points.

The July 2024 results of the Construction Materials Industry Composite Index, which is published regularly every month by the umbrella organisation of the construction materials industry, Turkish Construction Materials Manufacturers' Association (Türkiye İMSAD), were announced. According to the report, the number of working days normalised in July; however, the recovery in the Composite Index remained limited. Seasonality did not contribute to the index. Recovery in the domestic market was slow. Stagnation in export markets continued. Confidence and expectations also remained stagnant. Within the framework of all these developments, the Composite Index showed a limited increase in July. There was a strong decline in production, investment and employment expectations for the next three months.         

Composite Index increased by 0.25 points

According to Türkiye IMSAD report; Construction Materials Industry Composite Index increased by 0.25 points in July compared to the previous month and reached 68.06 points. The Composite Index rose for the first time after three months of decline after the local elections. With the normalisation of the number of working days in July, activities recovered compared to the previous month. However, the recovery remained below expectations.

Activity Index rose to 142.3 points

According to the Türkiye IMSAD report, which is carefully monitored by economic circles, the stagnation in global markets continued. The contribution of seasonality to the index was also limited. Due to all these developments, a limited increase was realised in the Activity Index in July.                         

Activity Index increased by 1.8 points in July compared to the previous month and rose to 142.3 points. Thus, Activity Index showed growth again in July. Domestic sales increased in July compared to the previous month. The normalisation of the number of working days was decisive in the Activity Index.

According to the report, exports showed a limited increase in July. Stagnation in the markets continued. The contribution of the normalisation in the number of working days to the Activity Index remained low. Production increased in July. There was a significant increase in turnover. Foreign sales prices increased to a limited extent.                                                

Fluctuations in the number of working days caused fluctuations in the Activity Index. With the normalisation of the number of working days, construction materials industry activities are expected to be determined by seasonality and developments in export markets from now on. The slowdown in the domestic market is expected to continue. The expected recovery in export markets is postponed. In the light of these developments, the report predicts that the Activity Index will remain stable.

Confidence level remained at 30.43 points

According to the report published by Türkiye İMSAD, Confidence Index remained stable in July and remained unchanged compared to the previous month and became 30.43 points.                

In the report, it was stated that the level of confidence in the Turkish economy remained weak. Confidence in the construction sector decreased slightly, while it remained unchanged in the construction materials industry. Confidence in domestic markets decreased slightly in July. Confidence in export markets, on the other hand, remained unchanged in July.    

Many factors continued to be determinant in the Confidence Index. Normalisation of the number of working days and seasonality did not contribute to the index in July. In the report, it was stated that geopolitical developments will continue to be one of the factors limiting confidence. It was also noted that the postponement of the recovery in export markets also limited confidence.

Expectation Index decreased by 0.3 points

In the report, it was stated that the Expectations Index declined slightly in July. Thus, the Expectations Index showed limited declines for six consecutive months. Expectations Index decreased by 0.3 points to 54.7 points in July compared to the previous month. Seasonality has not yet made a positive contribution to the index.

Domestic and foreign orders received weakened and these developments limited expectations. The tightening policies and the postponement of recovery in export markets also had a negative impact on expectations. Production, investment and employment expectations for the upcoming period decreased significantly in the last 2 months.         

According to the report, expectations for the Turkish economy fell to a very limited extent in July. The economic management and the protection of the economic programme supported the expectations for the economy for the time being. Domestic orders received for the next three months decreased slightly. Export orders for the next three months decreased slightly in July.             

Strong declines were observed in production, investment and employment expectations for the next three months. Expectations are expected to remain stable in the summer months due to domestic developments and the postponement of recovery in export markets.    

Within the framework of all these developments in the sub-indices, it was stated in the report that the Composite Index will be largely shaped by the effects of economic policies and developments in export markets in the following period and it was emphasised that the recovery in the index was postponed.  

About Türkiye İMSAD

In the 40 years since its establishment, Türkiye İMSAD, a non-governmental organisation representing the Turkish construction industry both at home and abroad, effectively reaches more than 32,000 points in the market with its 90 industrialist companies, 59 sector associations, 4 universities and 1 trade union members. Developing collaborations in Turkey and abroad for sustainable growth, Türkiye İMSAD closely monitors developments in the domestic market and closely follows foreign markets in order to maintain the success achieved in exports. Türkiye İMSAD represents 35 different sub-sectors, which are very important groups of the construction industry. Established in 2011 in Brussels and in 2015 in Cameroon, Turkey İMSAD carries out sectoral projects, publishes reports, and leads many projects funded by the European Commission. Since 2018, it has been hosting buildingSMART Türkiye.