Construction materials production picks up

ISTANBUL

Turkey’s construction materials production sector is benefitting from the country’s decision to ease most COVID-19-related restrictions, a regular survey by a trading group has shown.

The composite construction materials index climbed to 79 in June from 77.3 in the previous month, and well above the index value of 71 a year ago, the Construction Materials Producers’ Association (İMSAD) said.

“The gradual reopening boosted business activity, confidence and expectations in the industry as manifested in the increase in the composite index,” the association said in a statement.

The group noted that business activity, which slowed in May due to the coronavirus restrictions and the Eid al-Fitr holiday, recovered last month with the production index hitting an all-time high of 201.8 in June.

The business activity index increased to 129.4 in June from 124.5, marking its highest level since August 2017.

“Domestic sales grew strongly with the related index climbing to 163.5 and exports also continued their upward move,” the association said.

Participants of the İMSAD survey said their sales showed a significant increase in June. The corresponding index climbed to 205.2 in the month versus 139 a year earlier and 192 in May 2021.

Companies, however, suggested that they are still facing problems collecting their receivables with only a slight improvement.

Despite the improvements in a number of key indicators, the confidence index only inched up to 44.4 in June from 43.9 in the previous month.

“The confidence index pointed to a rather cautious improvement and remained fragile,” the association concluded.

Participants’ assessment regarding the overall economic outlook also showed a limited improvement with the respective index rising to 29.1 from 28.9 while their assessment of the situation in the construction industry remained almost unchanged as the related gauge stayed nearly flat at 32.6.