Construction materials output up 2.5 percent: Association

ISTANBUL

Production of the construction materials industry exhibited an annual increase of 2.5 percent in May, according to the Türkiye Construction Materials Industrialists’ Association (İMSAD).

In the January-May period, the industry’s production rose by 7 percent compared with the same period of last year.

Cement production grew 8.2 percent year-on-year, while ready-mixed concrete output rose by 8.2 percent.

The index of existing construction work, which rose 9.5 points in the April-June period after the local elections, declined by 2.1 points in July, according to the association’s monthly report.

In addition to seasonal factors, economic policies, activities in the earthquake-hit areas as well as urban transformation projects will set the course for the industry in the coming period, the report added.

“The new construction orders index, which posted a very limited increase in April and May, declined by 0.8 points in July. Thus, new orders remained stagnant at the beginning of the third quarter,” it said, adding that it will take some time for new orders to bounce bank.

The report noted that Türkiye needs to produce at least 750,000 homes each year, but the outlook in the housing market is not promising.

In the first half of 2024, tight monetary policies and high interest rates impacted home sales, the report underlined.

The industry’s exports grew 6.5 percent year-on-year to reach $2.7 billion in May, while construction materials imports rose by 5.1 percent to $1.16 billion, according to the association.