Construction Materials Production Increased in 14 Sub-Sectors
According to the August 2026 results of the Türkiye İMSAD Monthly Sector Report, construction materials industrial production followed a generally positive course in July. Of the 20 sub-sectors examined, the production index increased year on year in 14 while declines were recorded in five. Production growth reached double-digit rates in some sub-sectors while significant differences in performance among product groups were observed.
The August 2026 results of the Monthly Sector Report, prepared by the Turkish Construction Material Industrialists’ Association, Türkiye İMSAD, in cooperation with KPMG, have been released. The report assessed the production performance of the construction materials industry, differences among sub-sectors and the overall outlook for the construction industry.
While most construction materials sub-sectors recorded year-on-year production growth, some product groups experienced contraction. The report also examined developments in construction sector confidence, new orders and housing sales.
Production Growth in the Construction Materials Industry Varied Across Sub-Sectors
In July 2026, the production index increased compared with the same month of the previous year in 14 construction materials sub-sectors while declines were recorded in five.
Production of metal structures and structural components posted the strongest increase at 10.5% while ceramic covering materials recorded double-digit growth of 10.2%.
Production of concrete products for construction increased by 8.7%, heating, cooling and ventilation equipment by 8.4% and marble and granite production by 7.4%.
Production of gypsum products for construction increased by 4.6%, cement by 3.9%, construction paints and varnishes by 3.6%, bricks and roofing tiles by 3.2%, ready-mixed concrete by 2.7% and insulated cables by 2.4%.
Production of iron and steel construction products rose by 1.1%, metal doors and windows by 1.0% and wooden construction materials by 0.3%.
The sharpest decline in production was recorded in ceramic sanitary ware at 27.0%.
Production of plastic construction materials declined by 9.5%, taps, faucets, valves and similar fittings by 5.8%, locks and hardware products by 4.4% and electrical lighting equipment by 3.2%.
Production data for construction glass remained confidential.
The July results demonstrated that production performance in the construction materials industry continued to vary significantly among sub-sectors.
The report also included foreign trade data for the construction materials industry. In August 2026, construction materials exports increased by 7.5% year on year, despite declines in 19 sub-sectors. Imports rose in 23 sub-sectors and increased by 19.3% year on year.
Monthly Recovery in Construction Production Continued
The Total Construction Production Index continued the recovery that began in the second quarter of 2026 and reached 119.6 in July.
Despite the monthly increase, the Total Construction Production Index was 5.7 points lower than in the same month of the previous year.
The Building Construction Production Index declined by 11.5 points year on year while the Specialized Construction Activities Production Index fell by 5.5 points.
The Construction of Civil Engineering Structures Production Index was the only sub-index to record annual growth, standing 10.9 points above its July 2025 level.
Construction Activity Increased While Sector Confidence and New Orders Declined
According to the report, the Construction Activity Index for the Last Three Months increased by 4.7 points in August following a limited decline in July, reaching 93.5.
The index was also 4.1 points above the level recorded in the same period of the previous year.
In contrast, the Construction Sector Confidence Index declined by 3.4 points in August to 82.4 while the New Construction Orders Index fell by 5.8 points to 77.7.
Despite the short-term recovery in construction activity, declines in confidence and new orders indicated that a cautious outlook continues to prevail across the sector.
Housing Sales Increased in August but Fell 6.8% in the First Eight Months
Housing sales across Türkiye increased by 3.1% compared with July in August but declined by 14.7% year on year to 127,410 units.
First-hand housing sales decreased by 4.5% year on year to 44,378 units while second-hand housing sales fell by 19.4% to 83,032 units.
Mortgaged housing sales declined by 7.4% month on month but increased by 7.2% year on year to 22,131 units.
During the first eight months of 2026, total housing sales decreased by 6.8% compared with the same period of the previous year.
This outlook indicates that the limited recovery recorded in August was not sufficient to offset the overall decline in sales during the period and that the annual weakness was concentrated primarily in the second-hand housing market.