According to the monthly sectoral confidence survey released by the Turkish Statistical Institute (TUIK), the confidence index* for the construction sector in Turkey, which stood at 91.5 points in May this year, decreased by four percent month on month in June, falling to 87.9 points. The confidence index for the Turkish construction sector fell for the third consecutive month in June on month-on-month basis, after three successive months of strong month-on-month increase recorded in the January-March period.
According to the indices based on individual questions asked of Turkish construction sector enterprise executives who own private businesses with 10 or more employees, in June this year the confidence index for construction activities recorded in the latest three months, which stood at 102.8 points in May, increased by 2.2 percent to 105 points, despite the decline in the general index.
Meanwhile, the decrease in the construction confidence index was due to the month-on-month declines recorded in the June sub-index for current overall order books and total employment expectations over the next three months. The current overall order books sub-index decreased by 4.8 percent in June to 67.7 points, while the sub-index for total employment expectations over the next three months decreased by 3.5 percent to 108 points, both compared to the previous month.
Executives' expectations for sales prices in the next three months increased by 0.5 percent month on month to 110.3 points, remaining in the optimistic outlook zone.
Meanwhile, players in the sector indicate difficulties due to insufficient demand and financial constraints, according to the research results.
* Sectoral confidence index values range between zero and 200. When the index is above 100 it indicates an optimistic outlook about the current and the future period of the sector, when it is below 100 it points to a pessimistic outlook.