According to the monthly sectoral confidence survey released by the Turkish Statistical Institute, the confidence index for the construction sector in Turkey which stood at 81.8 points in December 2011 increased by 8.1% MoM in January 2012 rising to 88.4 points. Thus, the index has seen a significant rise at the beginning of 2012 after recording month-on-month decreases in the last 5 months of 2011.

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 January this year the confidence index for construction activities recorded in the past three months which stood at 99.2 points in December decreased by 9.4% to 89.9 points despite the optimistic outlook for general sectoral confidence.

According to executives' answers, the index for written orders received in the construction sector in January decreased by 3.6% MoM to 66.9 points. Executives' expectations for sales prices in the next 3 months increased by 13.7% to 114.5 points.

Meanwhile, players in the sector indicate insufficient demand and financing problems. In January, construction business executives said they thought their current work was enough to maintain activities in the sector for eight 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.

(Sourced from Steel Orbis)
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