ICI Turkish Export Climate Index April Results Were Announced

• 15.05.2019
• News

Istanbul Chamber of Industry (ICI) Turkish Export Climate Index that is the leading indicator measuring the activity conditions of Turkish manufacturing industry in the main export market realized in the level of 52,2 in April. The index showed a similar positive maintenance in the rest of 2019 in Turkish manufacturer’s export climate.

While Turkish manufacturers were relieved upon the stop of the deceleration in various European countries in April, the demand received from USA continued to be decelerated during April. Middle East continued to be one of the strongest areas in export climate. The most intense contribution to the Turkish manufacturing sector export was provided by Russia among BRIC countries which showed recovery in demand conditions in April.

The April 2019 results of Istanbul Chamber of Industry (ICI) Turkish Export Climate Index that is the leading indicator measuring the activity conditions of Turkish manufacturing industry in the main export market were announced. All figures to be measured above 50,0 which is the threshold in index points out to the recovery in export climate. The figures below 50 is considered as the deterioration. According to the data announced as independent to seasonal impacts, ICI Turkish Manufacturing Sector Export Climate Index was realized as 52,2 in April which was 52,3 in March. Accordingly, a similar positive maintenance was observed in April just like in the rest of 2019 in manufacturers’ export climate. Current recovery trend was left six years behind with this refreshment in export demand.

Key European markets showed indications of the beginning of refreshment of the growth in April following the modest deceleration in the last term. After the expansion in economical activity in Germany was experienced in the slowest speed of the last 69th months in March, slight acceleration was recorded in April. Similarly, manufacture in United Kingdom showed a slight recovery at the beginning of the second quarter following the horizontal maintenance in March. France returned to its growth path. Italy, Poland and Czech Republic where economic activity has shrank took place among the regions where slowdown continues in Europe.

The demand received from USA continued to be decelerated in April. The activity lost acceleration for two months successively and showed the smallest growth level of approximately the last two years in April. It has been seen that economic trends in USA which is both one of the biggest economies of world and one of the most important markets of Turkish manufacturing export have a strong impact on Turkish export orders.

Demand conditions improved in BRIC.

Manufacturing production in Canada, one of the other North American countries recorded a shrinkage for the first time since October 2016. Middle East continued to be one of the strongest areas in export climate. Non-petroleum based economical activity in both United Arab Emirates and Saudi Arabia accelerated and realized a obvious growth compared to March. And Egypt returned to its growth path after approximately one and half year break. Demand conditions of all BRIC countries showed recover in April. The most intense contribution to Turkish manufacturing sector among those countries is received from Russia where the manufacturing continues to increase strongly.

Andrew Harker, Deputy Director of IHS Markit, who evaluated ICI Turkish Export Climate Index, said that: While Turkish exporters are relieved upon the stop of the deceleration experienced in several European trade partners in April, they will hope that the acceleration lost observed during the first quarter to be left behind. There have been the deceleration of the growth in USA further and the potential impacts of this deceleration on the global trade trends in the biggest economies of the world on the relatively negative side of the survey.”