ICI Turkish Export Climate Index June Results Were Announced
- 16.07.2019
- 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 51,5 in June. The index continued to point out the moderate improvement in the export conditions of the Turkish manufacturers and was realized at the lowest level of the last six months.
In addition to the main European export markets in June, with the impact of the respectively weak growth of economic activity in USA, the global demand conditions were realized weakly and therefore it caused some challenges for the Turkish manufacturing industrial exporters.
The June 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 51,9 in June which was 52,2 in May. The index continued to point out the moderate improvement in the export conditions of the Turkish manufacturers and was realized at the lowest level of the last six months.
Another respectively weak growth was recorded in some main export markets of Türkiye in June as well. Economic activity of Germany in Euro Region grew as parallel to the speed in May. Similar situation was valid for Spain while the activity was realized in a horizontal way in Italian companies for 2 months subsequently. View was much more positive for France taking approximately 5 percent rate of share out of the Turkish manufacturing industry export. Manufacturing in the country was recorded the strongest increase of the last seven months. Growth speed of both Holland and Greece lost speed compared to May.
Economy of United Kingdom entered into shrinkage region in June and the activity recorded deceleration for the first time since 2016. At the end of the second quarter, challenging demand conditions were observed in North America. Economic activity in USA exhibited the slowest increase of the last three years and it gained a slight speed in June; however, the growth could not exceed the moderate level. Canada decelerated in the highest rate of the last three and a half year in terms of manufacturing industry manufacture. Middle East exhibited a fast improvement in June in terms of demands just as it did for the rest of the 2019.
Increase in China is at the slowest rate of the last eight months.
Economic activity in United Arab Emirates and Saudi Arabia recorded a significant increase. However, Egypt and Qatar remained within the shrinkage region. Activity increased in a significant rate in some African economies such as Nigeria and Uganda; however, since they consist of a very limited part of the export of Turkish manufacturing sector, their impact on the index remained in a limited rate. Asian economies recorded a moderate growth in June.
The second biggest economy of the world, China recorded the lowest rate of manufacturing increase of the last eight months where the impact of the commercial tension experienced with USA was distinctive. Demand conditions in Japan and India experienced limited improvements.
Andrew Harker, Deputy Director of IHS Markit, who evaluated ICI Turkish Export Climate Index, said that: “According to June PMI data of Turkish manufacturing industry, it was able to step into the growth region once again despite of the generally weak global demand conditions. Besides, the growth rates in export markets maintained their degrees below the levels of 2018. Therefore, the attempts of Turkish manufacturers to protect the sales levels seem to be supported by competitive pricing.