Turkish construction sector confidence falls further in May

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 92.6 points in April this year, decreased by 1.2 percent month on month in May, falling to 91.5 points. The confidence index for the Turkish construction sector fell for the second consecutive month in May on month-on-month basis, after three successive months of 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 May this year the confidence index for construction activities recorded in the latest three months, which stood at 98.2 points in April, increased by 4.6 percent to 102.8 points, despite the decline in the general index. Meanwhile, the decrease in the construction confidence index was due to the 3.8 percent month-on-month decline recorded in the May sub-index for total employment expectations over the next three months.
 
The executives' answers indicated that the index for written orders received in the Turkish construction sector in May increased by 3.2 percent month on month to 71.1 points.
 
Executives' expectations for sales prices in the next three months decreased by four percent month on month to 109.8 points, though remaining in the optimistic outlook zone.
 
Meanwhile, players in the sector indicate difficulties due to financial constraints and insufficient demand, 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.