Ready-Mix Concrete Expectations Index Surpasses All Other Indices for the First Time This Year

Foreks - The Ready Mixed Concrete Association of Turkey (THBB) has announced the "Ready Mixed Concrete Index" Report for November 2024, which showcases the current situation and expected developments in the construction-related manufacturing and service sectors that are eagerly awaited each month. In November, a slight decline was observed in the Activity Index compared to October, while for the first time this year, the Expectation Index reached a value above all other indices. All indices showed an increase in November compared to the same month last year, with the Expectation Index experiencing the largest rise and the Activity Index the smallest.

Through the Ready Mixed Concrete Index released every month, the THBB presents the current situation and expected developments in the construction sector and related manufacturing and service industries in Turkey. This Index, related to ready mixed concrete—one of the fundamental inputs of the construction sector, which is used shortly after production without being stored—serves as a leading indicator of the construction sector's growth rate.

According to the Ready Mixed Concrete Index Report for November 2024, volatility in the Activity Index continues, and a slight decline was observed in November compared to October. An unusual situation has been noted in the Expectation and Confidence Indices recently. Despite the Expectation Index reaching a value above all other indices for the first time this year, it should not be overlooked that it still remains below the threshold value. Although the Confidence Index showed an increase in November in line with the Expectation Index, it still remained in the negative territory.

In the past November, all indices showed an increase compared to the same month last year. The most significant rise was in the Expectation Index, while the Activity Index experienced the least increase. A moderate rise was observed in the Confidence Index as well, and the increases across all indices have also lifted the Composite Concrete Index.

Evaluating the results of the report, Yavuz Işık, Chairman of the Board of the THBB, stated, "In the Activity Index, a slight decline was seen in November compared to October, while the Expectation Index reached a value above all other indices for the first time this year. In November, all indices showed increases compared to the same month last year, with the Expectation Index experiencing the largest rise and the Activity Index the smallest."

Sharing his views on economic developments, THBB Chairman Yavuz Işık remarked, "Both annual and periodical analyses indicate that there was no significant increase in construction activities in the past November, while the rise in expectations has drawn attention. Although the sector is overall performing better compared to the same period last year, the current level of indices reflects that the construction sector continues to be affected by the contraction in the domestic market. While it is said that the expectation of a rise in housing prices from 2025 onwards has created some activity in the sector and housing sales, the onset of a revival in construction activities is still far off. If the rising expectations of the past four months continue in the same direction moving forward, particularly with interest rate reductions, it seems probable that the sector may gain momentum in 2025."