Data signal pick up in construction activity: Association

ISTANBUL

A series of data shows signs of construction sector activity picking up, the Türkiye Construction Materials Industrialists’ Association (İMSAD) has said.

The existing construction activities index increased 8.2 points in January from the previous month, while the new construction orders index rose 5.2 points month-on-month, the business group said in a report.

Construction activities appear to have accelerated in the run-up to the local elections, slated for March this year, and the urban transformation projects are also gathering momentum, giving a boost to confidence in the industry, it added.

The construction confidence index jumped 6.6 points in January from December 2023, İMSAD noted in its monthly report.

The association, however, stressed that despite the signs of recovery in construction activity, the monetary tightening policies and the resulting higher interest rates are still posing challenges to the industry.

The construction materials industry’s production continued to increase in the final quarter of 2023, said the report, adding that the output in November last year grew 8.4 percent month-on-month.

“But demand from foreign markets remained weak,” it noted.

The construction materials export plunged 6.8 percent annually to $2.39 billion, while imports were down 1.2 percent to $864 million in November, according to the association.