IMSAD: 'Expectations for the second half of the year weakened'

Construction Materials Industry Composite Index, prepared by Turkey IMSAD, decreased by 0.05 points to 74.76 points in June. The Expectations Index continued to decline in June and decreased by 1.1 points compared to the previous month. Expectations for the second half of the year showed a decline. Export orders for the next three months also declined for the first time in a long time.

The June results of the Construction Materials Industry Composite Index prepared by the Association of Turkish Construction Material Industrialists (Türkiye İMSAD) were shared. Last month, the normalization of the number of working days led to a revival in the sector, while expectations for the rest of the year weakened. The Composite Index declined slightly in June. While the upturn in activity supported the Composite Index, the weakening in confidence and expectations led to a decline in the index. The Composite Index, which recorded a limited decline after May, decreased by 0.05 points to 74.76 points in June.

The effects of the high season were felt

In the construction materials industry, the favorable contribution of the high season and the increase in the number of working days compared to the previous month led to significant increases in activity. In this period, domestic and foreign demand increased, while the restraining effect of high inflation and costs remained weak. The Activity Index, which stagnated in May due to the decrease in the number of working days, jumped in June. With the effect of the high season, all activity groups posted increases, while the dynamism in domestic and foreign demand made a major contribution to the index. In addition to domestic sales, exports also increased. With the normalization in the number of working days, increased domestic and foreign demand led to an increase in production. There was a high increase in turnover, some of which was driven by inflation. Despite the unfavorable economic developments, the dynamism in domestic and foreign demand continues.