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Production in construction

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Turkish Statistical Institute (TurkStat)

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Index of Production in Construction

13 January 2025

The index of production in construction measures the volumetric change in outputs produced in the construction of buildings, civil engineering and specialised construction activities sectors through the inputs of materials and labor used in these sectors.

Material input; it is the monetary value paid by enterprises operating in the construction sector for the materials they purchase during the construction process.

Labor input; it is the wages paid to employees by enterprises operating in the construction sector.

Enterprise

In Turkey in reference year, the activities of enterprises in the construction of buildings (41), civil engineering (42) and specialised construction activities (43) sectors according to NACE Rev.2 are included.

Whole country (Türkiye)

Monthly

The data used to calculate this indicator is obtained from administrative records. Impact analysis is performed for the data used each month, and if there is a deviation due to incorrect values ​​in material and labor inputs, it is compared with different indicators such as turnover data and necessary corrections are made.

Indices and percentage change

The index of production in construction is calculated based on the material inputs and labor payments of enterprises operating in the sectors of building construction (41), civil engineering (42), and specialized construction activities (43) according to the NACE Rev.2 classification.

Material inputs are calculated using the invoices issued by enterprises that produce, trade and provide services related to these materials to construction firms. Until July 2021, Form Ba (purchase invoices) and Form Bs (sales invoices) records were used to determine these inputs, but as of this date, e-invoice records have been used. The obligation for e-invoicing has been gradually increasing each year since 2021. However, there are enterprises in the construction sector that do not have e-invoice data. In such cases, material input values at the enterprise level are estimated using labor payments for each month. For these estimates, the data of enterprises with both material and labor payment records at the class level (four-digit) are collected, and the ratio of material inputs to labor inputs is determined.

 This ratio is then applied to the labor payments of enterprises without material input data, thereby estimating the material inputs for these enterprises. The material inputs for each month are calculated by taking the average of the current month and the previous two months.

The index of production in construction is calculated using the volume value formed by separately deflating material and labor inputs and summing them. The material input is deflated using the material component of the construction cost index for the relevant sector, while the labor input is deflated using the labor component of the construction cost index for the relevant sector.

 As a result, the volume values of total inputs are obtained both at the section (total) level and division (two-digit) level. These volume values are aligned with the volume value of the annual accounts (benchmarked). The bench ratio is determined by using the input volume value calculated at the letter level and the volume value of the Gross Domestic Product based on the production method. For past years' data, the bench ratio of the same year is used, while for 2023 and beyond, the most recent years' data will be used.

The index of production in construction is calculated using the fixed-base Laspeyres index method (2021=100) with the benchmarked total input volume values. Total index are calculated by weighting the division-level indices with annual value-added data.

The index of production in construction, published monthly (t+45), includes unadjested indices, calendar-adjusted indices, seasonally and calendar-adjusted indices, as well as monthly and annual changes.

Data Sources:

The data used to calculate the index of production in construction is sourced from administrative records.

Form BS – Form BA records: This data are provided by the Revenue Administration. Material input is calculated using invoices issued to enterprises whose main activity is construction.

E-Invoice Data: This data are provided by the Revenue Administration. Material input is calculated using e-invoices issued to enterprises whose main activity is construction.

(SSI) Monthly Premium and Service Return: This data is provided by the Social Security Institution. The payments made to employees by enterprises whose main activity is construction are used as labor input.

The combination of these two data sources provides the total input data.

Monthly

45 days. Results are published in an average of 45 days from the reference month.

The Index of Production in Construction is produced and published in accordance with the European Union Short-Term Business Statistics Regulation. This index is not expected to be generated using a single method applicable to all countries; rather, each country is expected to produce it based on its available data and the most appropriate methodology. In Turkey, this indicator is calculated using administrative records that include the majority of inputs used in construction production. The index is published monthly and in a timely manner. The publication includes details such as unadjusted indices, calendar-adjusted indices, seasonally and calendar-adjusted indices, as well as monthly and annual changes.

The Index of production in construction is comparable with the index of production in construction of all countries that publish their indicators in accordance with the European Union Short-Term Business Statistics Regulation.

The data related to the Index of Production in Construction is comparable over time. The series for this indicator have been calculated starting from 2017, with a base year of 2021=100. The calculation uses the fixed-based laspeyres index method. When significant changes occur (such as classification, base year, or methodological changes), the historical series will be recalculated retrospectively.