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9/11/2019

İMSAD’s Turkey Construction Sector August 2019 Report

"In August, construction works increased only 0.1 point compared to previous month and remained to be at low level. This shows about 25% narrowing when compared with previous years. With the new assumed construction work, there seems a limited recovery and return from deep level. However, the level of assumed works is still very low. This indicates the narrowing in Construction Sector will continue in the next quarters as well..."

Turkey Construction Material Industrialists Association (İMSAD) has released Turkey Construction Sector August 2019 report.

In the Report, Construction Sector is noted to narrow by 12.7% in the second quarter of 2019, Construction Sector gradually narrows in four quarters successively, most rapid shrinkage experienced in this quarter, narrowing expedited in Construction Sector as of quarters. 

"Construction expenditures decreased 33.0% or 37% in real sense"

It is noted that construction expenditures receded 11.8% on current prices in the first half of  2019 compared to the same period of previous year, thus, nominally expenditures decreased. In the meantime, when compared with annual 21.1% construction cost increase occurred in the same period and 25.04% producer price indexes, it is seen that construction expenditures decreased 33.0% or 37% in real sense.

"When current construction works level compared to previous years, there seems about 25% shrinkage"

It is reported that in August, construction works increased by only 0.1 points compared to previous month and remained to be at extremely low level. Construction Works tended to increase following the sharp decrease in January and this trend continued until May, in June, decrease started as the result of long bayram holiday and political expectations. In July, construction Works level increased by 5.2 points compared to previous month. In August, Works remained at the same level, under the lights of foregoing, construction works shows 25% shrinkage when compared to the level of previous years.

In Construction Sector, new work orders received in July 2019 increased on monthly basis for the first time, suddenly increased by 2.9 points in August. There seemed a limited recovery in new construction works and a return from deep level. However, level of new work orders are still low, for this reason, narrowing expected to continue in forthcoming quarters as well in Construction Sector.

"In the first half of 2019, Construction Material Industry Production receded by 20.3%"

In the report, following details furnished on construction material industry production and import:

"Construction Material Industry Production narrowed by 20.3% in the first half of year. The shrinkage in construction materials industry production in June 2019 was 21.2% compared to June 2018. Thus, narrowing experienced in every single month in the first half of new year. Prodcution receded by 20.3% in the first half of 2019. In this period, about one to five production loss experienced . Sharp shrinkge in domestic market continues to be effective on this recession. Increase in Export quantity cannot compensate this production loss. 

In the first half of 2019, construction materials export narrowed by 0,5% to be USD 10,33 billion. Construction materials export closed  2018 with USD 21.57 billion export, fluctuated in the first half of new year. In  2018 June-2019 June period, annual export has been USD21,56 billion. Annual export receded below of 2018 export level. 

Construction materials import receded to a great extent in 2018 down to USD 8,1 billion. In the first half of 2019, sharp decrease impetus in import continued. In the first six months, import receded by 27,9% to USD 3,31 billion. Thus, in end of first half of 2019, annual import receded down to USD6,82 billion."