ICI Turkish Export Climate Index August Results Were Announced

• 10.09.2019
• 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 51,1 in August. Even if the index has pointed out to the moderate improvement in the demand conditions in the export markets, it has shown that the climate has been strengthened in the lowest level since May 2013.

Deceleration of the growth in USA in the last one and a half year to the lowest rate and current minor growth in various European countries affected the slowdown of the improvement in export climate of Turkish manufacturers in August.

The August 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 while others to be measured under 50,0 point out to the deterioration in export climate.

According to the data announced as independent to seasonal impacts, ICI Turkish Manufacturing Sector Export Climate Index was realized as 51,1 in August which was 51,3 in July. Even if the index has pointed out to the moderate improvement in the demand conditions in the export markets, it has shown that the climate has been strengthened in the lowest level since May 2013. The improvement in the export climate of Turkish manufacturers maintained its slowdown in August because of deceleration in the growth in USA and current minor-scaled growth in various European economies. The improvement lost its speed in the sixth month subsequently upon the slowdown of the global economy. The signals pointing out the presence of a weakness in manufacturing sector throughout the world were observed to have been increased.

The manufacturing rate maintained its slowdown in Germany.

There were some signals pointing out that the growth gained speed in Germany which is the biggest export market of Turkish manufacturers and the biggest economy of Euro Region. However, while the improvement in economic activity was realized as service sector-based, decrease in the manufacturing sector was maintained. Improvement signals in growth in the other Euro Regions such as French, Spain, Holland, Greece and Ireland were exhibited. Manufacturing activities were stagnant generally in Italy which is one of the five biggest markets of Turkish manufacturing sector. Weakness signals maintained their presence visibly in United Kingdom where the economic activity has decreased for the second time in the last three months. However, the deceleration was recorded in a slight level. The production was observed to have decreased in Austria, Czech Republic and Poland.

The growth decelerated in USA and economic activity increase in the Middle East maintained its presence.

Signals pointing out that the growth in USA which consists of 5 percent of the export activities of Turkish manufacturing sector and the biggest economy of the world increased. Increase in the manufacturing realized in a moderate way and in the lowest rate of the last three and half year. Manufacturing was observed to be continued shrinking in Canada.

While continuing to increase the economic activities in Middle East economies, the growth in the Saudi Arabia was observed to gain speed. On the other side, while the growth in United Arab Emirates decelerated, Egypt entered into the shrinking region again. Economic activity increased in four BRIC countries in August and acceleration in the growth in Brazil, Russia and China drew attention. Finally, economic activity of private sector in Hong Kong where local protests were interrupted showed an obvious decrease.

Andrew Harker, Deputy Director of IHS Markit, who evaluated ICI Turkish Export Climate Index, said that:

“The problems experienced in the manufacturing sector throughout the world continued to create challenges for Turkish manufacturers in August. Even if the service sectors show high performances still, general demand conditions maintained their weakness. Deceleration of the growth in USA to the lowest rate of the last three and half months in the last survey period is highly attention-grabbing. On the other hand, growth’s gaining strength in various economies and the economy of United Kingdom’s getting into shrinking region pointed out to a complicated view in European markets.”