The outlook will remain negative for Turkey’s construction sector in the coming quarters even though new construction orders saw a month-on-month increase in July and August, according to the Association of Turkish Construction Material Producers (İMSAD).
İMSAD’s monthly report said that despite a 2.9 percent month-on-month increase in new construction orders in August, recovery in confidence levels has been limited and that figures point to a possible continuation of the declining trend in the coming quarters.
In the first half of the year nominal construction expenditure dropped 11.8 percent year-on-year. Taking into account the increases in construction costs and the producer price index, the contraction is calculated to be as high as 33 percent, according to the report.
The construction sector, seen as the driving force behind Turkey’s economic growth in past decades, declined 12.7 percent in the second quarter of 2019, performing well below the general economy.
Source: Turkish Minute