Pace of increase in construction costs slows further
ANKARA
The annual increase in the headline construction cost index slowed for a seventh month in a row in December, data from the Turkish Statistical Institute (TÜİK) showed on Feb. 12.
The index rose by 34.3 percent in December, down from 35.9 percent in the previous month.
The index advanced 0.7 percent month-on-month.
Labor costs increased 1.3 percent monthly and 53.4 percent annually, while the year-on-year and month-on-month increases in the construction material cost index were 0.4 percent and 26.2 percent, respectively.
Meanwhile, Türkiye’s construction materials export declined 0.5 percent in 2024 from the previous year due to weak economic activity in foreign economies and the fallout from geopolitical tensions, according to the trading group.
The sector’s exports fell to $29.03 billion last year, while in terms of volume, shipments to foreign markets rose 1.2 percent to 45.88 million tons, the Turkish Construction Material Producers’ Association (İMSAD) said in a report.
The association also cited the strong Turkish Lira as the reason for the decline in the industry’s export revenues.
Last year, the country’s construction materials imports amounted to $11.3 billion, down 0.3 percent from 2023.
