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Earthquake effects were felt in the Construction Materials Industry Compound Index

According to the report of Turkey İMSAD, the roof organization of the construction materials industry; Construction Materials Industrial Composing Index fell to 69.30 points in February. In the report; Despite the limited decrease in construction materials industrial activities due to earthquakes, there was a high increase in production expectation. The needs that emerged in re -zoning, repair and strengthening after disaster were also effective at the level of trust and expectation of the sector.

The results of the February 2023 of the ’Construction Materials Industry Compound Index, which is regularly shared by the Turkish Construction Materials Industrialists Association (Türkiye İMSAD) every month, were announced. The report emphasized that the compound index decreased by 0.20 points to 69.30 points compared to the previous month due to earthquakes that caused great destruction in 11 provinces. According to the report; Earthquakes, which caused deep wounds in the heart of the whole society, caused a harsh decline in the construction materials industrial activities in February. However, the needs that emerged for the construction materials industry during the process of reconstruction, repair and strengthening activities after disaster; It was effective at the level of trust and expectation in the sector.

The stopping of the production in the disaster area has made a decrease in exports

In February, the effects of the earthquake disaster rather than seasonality and the conditions in the markets were decisive on the compound index. Accordingly, the Activity Index decreased by 2.2 points in February compared to the previous month. Similar tendencies were experienced in the lower activity groups. The shrinkage was very high in the domestic market. The report emphasized that domestic sales declined significantly compared to the previous month in February and exports decreased significantly. One of the reasons for the decline in exports was the stopping of industrial production in the disaster region.

Re -zoning and repair activities will increase activities

Seasonality and domestic market, global stagnation and activities that tend to slow down in the foreign market, the effect of earthquakes in February had harsh decreases. However, according to the report; Re -zoning and repair works in the earthquake zone and renewal and strengthening activities in risky regions are expected to increase the activities. The confidence index, which closed the previous month with the rise in the construction materials sector, increased by 0.29 points compared to the previous month. With the reconstruction of the 11 provinces that experienced great demolitions due to earthquake effect, the support given to the construction sector towards the election was effective at the level of confidence.

There was a leap in production expectations

The expectation index increased by 0.20 points in February compared to the previous month. Despite the general negative effects of the earthquake disaster, the business potential for the construction sector after the earthquake disaster supported expectations. Despite the weak activities in domestic and foreign market conditions, the expectation of an increase in activities for the coming period has come to the fore. The report underlined that expectations of the Turkish economy declined to a very limited extent and that the domestic orders received for the next three months have not changed. Export orders for the next three months declined to a limited extent in February. However, the production expectation of the next three months increased in February. Production expectations have increased especially with the expectations of the increase in domestic demand.

Source: (Byzha) – White News Agency


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