Improvements in confidence and expectations continued in January when operations regressed with the seasonality. Following these developments, Composite Index occurred 10 points higher compared to the month of January in the previous year while all subindexes ended higher than the month of January of the previous year. It is stated in the report that the increase in confidence and expectations signals a strong recovery for the operations in the upcoming season.
January 2018 results of the Construction Products Industry Composite Index published by the Association of Turkish Construction Material Producers(Türkiye İMSAD) regularly on a monthly basis have been announced. The Composite Index regressing on a limited scale in the month of January occurred as 98.96 score level. Emphasizing that confidence and expectations continue to improve while operations regressed with the seasonality, Composite Index included the following information:
Operations regressed with the impact of seasonality
All subindexes regressed with the seasonality in parallel with the expectations regarding the operations. Domestic sales and exportation decreased together; production and endorsements also regressed. Traditional recovery is expected as of February since there is no other reason for this regression apart from the seasonality.Regression was experienced in the construction products industry operations in January compared to the previous month. Seasonality took its strongest impact on the construction operations in January.
Operation index decreased by 1.8 points in January compared to December. Nevertheless, the operation level exceeded the month of January of the previous year by 15.1 points in January. Domestic sales significantly decreased in January. The level of exportation also decreased on a limited scale in January following the month of December. Production decreased with the seasonality. Endorsements decreased based on the regression in domestic and foreign sales in January. It was observed that the regression in the collection speed continued upon slowing down.
Recovery in the confidence index continued on January
The increase in confidence in spite of the decreases in the operations and risks experienced in the geopolitical area indicated that dynamics of the sector are in good condition. Another limited increase occurred in the confidence index in January following the limited increase experienced in the month of December. In this way, a gradual and slow recovery started in the confidence. The increase in confidence occurred in spite of the significantly decreased operations with the seasonality in January. According to the index considering the two-month successive increase in the confidence index important, the level of confidence increased by 0.5 points compared to the previous month. In this way, the level of confidence exceeded the same month of the previous year by 4.7 points. The confidence in the economy of Turkey increasing on a limited scale in December after a long time slowed down in January. The confidence in the domestic markets was also static in January. The confidence in the exporting markets, on the other hand, continued to increase in January. The highest increase was in confidence in export markets. The increase in the confidence factors in January following the month of December gave hope for the upcoming season even on a limited scale.
Significant increase in the production, investment, and employment expectations
An increase was experienced in the expectations index in spite of the strong seasonality impact in the month of January. Only the domestic market order expectations regressed while a considerable increase occurred in the export order expectations. An increase was also observed in the production, investment, and employment expectations. A limited recovery was experienced in the experiences in January, as in December. The recovery in the expectations in spite of the decreases in the operations and important developments experienced in the geopolitical area indicated that dynamics of the sector are in good condition.The expectations index increased by 0.7 points in January compared to the previous month. In this way, the expectations index exceeded the same month of the previous year by 10.9 points. Expectations gradually continued to exceed the same period of the previous year in January. Expectations on the economy of Turkey slowed down in January. Expectations on the construction products industry increased on a limited scale in January. Domestic orders received for the upcoming three months decreased on a limited scale with the seasonality. The increase in the export orders for the upcoming three months gained speed again in January and occurred on an extremely high level. Significant increase experienced in the production, investment, and employment expectations of the upcoming three months as the new season approaches.