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 97.82 points in June this year, increased by 0.5 percent month on month in July, rising to 98.31 points.
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 July this year the confidence index for construction activities recorded in the past three months, which stood at 114.28 points in June, increased by 4.9 percent rising to 119.20 points despite the pessimistic outlook for general sectoral confidence.
According to executives' answers, the index for the written orders received in the construction sector in July increased by 1.51 percent month on month rising to 74.02 points. Executives' expectations for sales prices in the next three months increased by 4.93 percent rising to 120.96 points while the executives' expectations for fixed capital investments in the next 12 months as compared to the past 12 months decreased 2.28 percent compared to six months ago, falling to 115.54 points.
Meanwhile, players in the sector indicate insufficient demand and financing problems, mainly due to the lack of activities in the construction sector, according to the research results. In July this year, construction business executives said they thought their current work was enough to maintain activities in the sector for 7.2 months.
* 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.