THBB: In October, All Indices Declined Compared to the Same Month Last Year, Dragging Down the Concrete Index

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THBB: In October, All Indices Declined Compared to the Same Month Last Year, Dragging Down the Concrete Index

Foreks - The Ready-Mixed Concrete Association of Turkey (THBB) has announced the "Ready-Mixed Concrete Index" October 2024 Report, which shows the current situation and expected developments in the construction-related manufacturing and service sectors, eagerly awaited every month.

The Activity Index has shown fluctuating movement, exceeding the threshold value only 4 times in the first 10 months of the year. In October, all indexes decreased compared to the same month last year, pulling down the Concrete Index.

The report states: "The Ready-Mixed Concrete Association of Turkey (THBB) reveals the current status and expected developments in the construction sector and related manufacturing and service sectors through the Ready-Mixed Concrete Index, announced monthly. This index related to ready-mixed concrete, which is one of the fundamental inputs of the construction sector and is used in construction shortly after production without stocking, is a leading indicator of the growth rate of the construction sector.

According to the Ready-Mixed Concrete Index October 2024 Report, the Activity Index shows fluctuating movement. While the Activity Index exceeded the threshold value only 4 times in the first 10 months, it remained below that value for 6 months. There is not a significant change in the Expectation and Confidence Indexes; however, both indexes continue to operate below the threshold value. Although the increase in the Activity Index raised the Concrete Index, this movement is not substantial enough to push the index above the threshold.

In the past October, all indexes showed a decline compared to the same month last year. The most significant contraction occurred in the Activity and Confidence Indexes, while the decline in the Expectation Index was relatively lower. The decrease in all indexes has also pulled down the overall Concrete Index."

Evaluating the results of the report, THBB Chairman Yavuz Işık stated, “The Activity Index exceeded the threshold value only 4 times in the first 10 months of the year. Although the increase in the Activity Index raised the Concrete Index, this movement is not enough to push the index above the threshold. In October, all indexes decreased compared to the same month last year, pulling down the Concrete Index.”

Sharing his views on economic developments, THBB Chairman Yavuz Işık noted, “In October, residential sales reached the highest monthly sales figures in the last 2 years. Although a significant increase was observed in mortgage sales, the share of financed residential properties in total sales remains low. A significant portion—about two-thirds—of the residential sales in October occurred through second-hand properties. The primary reason for the activity in residential sales, which began in September and continued to increase in October, appears to be relatively low housing prices. According to the data released by the Central Bank for September, housing prices increased by 27.4% nationwide but decreased by 14.7% in real terms. This marks the lowest rate of increase in housing prices since June 2020. Consumers, anticipating an increase in housing demand and prices post the expected interest rate cuts in 2025, seem to have acted by bringing forward their demand.”