Construction Sector Enters Final Quarter with Weak Momentum

The Turkish Ready-Mixed Concrete Association (THBB) has released the September 2025 version of its “Ready-Mixed Concrete Index” report, which is published monthly and presents the current situation and future expectations in the construction sector and its supporting manufacturing and service industries. According to the report, the Activity Indicator fell below the predetermined critical threshold in August following its peak in July and has maintained this low level throughout September. Although the indicators show more favorable values when compared to the same period last year, they remain below the reference level, indicating that while the sector is in a better position than a year ago, it has failed to reach the targeted performance.

The gauge system released monthly by the Turkish Ready-Mixed Concrete Association explains the current conditions and anticipated developments in the construction industry and its dependent manufacturing and support services. Ready-mixed concrete is a fundamental raw material for the construction sector and is used directly on construction sites immediately after production without being stored. For this reason, the indicator system related to ready-mixed concrete is considered important as it serves as an advance signal of the sector’s momentum and development pace.

According to the information contained in the report for September 2025, the Activity Indicator declined below the critical threshold in August from its July peak and entered a horizontal trajectory below this threshold in September. Both the Expectations and Confidence indicators have shown negative trends. Despite the slight increase recorded in the Expectations category, the indicator was unable to rise above the threshold value. The Confidence indicator weakened in September. Additionally, the Combined Concrete Indicator also declined in tandem with the decrease in the Confidence Indicator.

All indicators reviewed in the September period are positioned higher compared to their levels in the same month of the previous year. In terms of magnitude of increase, the Activity and Expectations indicators rank among the leading ones, though it must be noted that both were numerically below the threshold value in September. The increase in the Confidence indicator remained very limited compared to the previous year. Despite all indicators remaining below the threshold in September, their positioning at higher levels compared to the previous year confirms that the construction sector has advanced compared to September of the prior year, yet the current situation has not reached the desired target point.

Analyzing the report’s findings, Yavuz Işık, Chairman of the Turkish Ready-Mixed Concrete Association Board of Directors, stated: “Following the high point achieved in July, the Activity Indicator fell below the threshold in August and has maintained a steady course below the threshold line in September. All indicators in September showed increases when compared to September of the previous year. Although all indicators remain below the threshold, their demonstration of superior values compared to the previous year indicates that the construction sector is in a more developed position compared to the same period of the previous year, yet the desired level has not yet been reached.”

Providing commentary on the economic environment and future expectations, THBB Chairman Yavuz Işık stated: “The primary determinants of economic movements in the final three months of the year and particularly in 2026 will be interest rates and consequently borrowing and financing costs. Globally, alongside the possibility of a slowdown in economic growth and concerns about stagnation, movements toward easing monetary policy tools in some economies are drawing attention. The most positive outlook for our sector would be the decline of price increases within a framework of stability, the Central Bank adopting a clear and predictable stance, and the state executing planned infrastructure and construction expenditures in a timely manner. In such an environment, housing purchase intent and capital investment appetite could strengthen, and the construction sector could contribute more broadly to national income growth and job creation. However, if price increases persist, there is a lack of clarity in interest rate decisions, or external shocks occur, cost factors and the financing situation could deteriorate. As long as macroeconomic management structures eliminate uncertainties, control spending and financing risks, and secure the investment environment, construction activities will serve the country’s economic development to an even greater extent.”