ICI Turkish Export Climate Index May Results Were Announced

• 17.06.2019
• 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 51,9 in May. While the recovery in the export climate continued with a slowdown, this development was caused by the slowdown in the growth in USA with which Türkiye carried out 5 percent of its manufacturing sector export.

While the manufacture recorded the most moderate slowdown of the last three months in Germany, the biggest export market of Turkish manufacturing sector, the demand recovered moderately in England, France and Spain and the strong growth in Middle Eastern economies such as S. Arabia and UAE continued.

The May 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 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 May which was 52,2 in April. The growth in majority of the fundamental export markets of Turkish manufacturers decelerated or realized horizontally in May when the global economical conditions were weak relatively. Therefore, the recovery in export conditions lost acceleration.

One of the main drives behind the slowdown appearance in May was the deceleration of the growth in United States with which Türkiye carried out 5 percent of its manufacturing sector export. Economical activity in USA recoded a slight increase in May and this increase realized in the slowest level of the last 3 years. Growth in much less rate in both manufacturing and service sectors was recorded. The growth exhibited a slowdown in various European economies since the beginning of this year. The growth in May realized in the moderate level.

Moderate decrease in the manufacture of Germany, the biggest market

Private sector manufacture in Germany, the biggest export market of Turkish manufacturing industry’s products increased in the highest level of the last three months. Therefore, the manufacture sector maintained its shrink tendency in manufacturing sector. The demand in England, France and Spain recorded a moderate recovery. Economical activity in Italy realized horizontally compared to the previous month. Manufacture exhibited decrease in other significant export markets for Turkish manufacturing sector such as Poland and Egypt. Strong growth appearance in other Middle Eastern economies such as Saudi Arabia and United Arab Emirates maintained its existence against the slowdown in economical activity in Egypt. Recovery in the demand conditions in China realized in the lowest rate of the last three months in May. Growth speed in India and Japan, other significant Asian economies was low and showed very few changes compared to the April.

Andrew Harker, Deputy Director of IHS Markit, who evaluated ICI Turkish Export Climate Index, said that: “Turkish manufacturers have mostly tried to focus on export markets in the last term. However, while the global economical conditions have still been weak, such developments limit the growth in the key export markets of Türkiye. On the other side, competitive advantage of Turkish lira against other currency units will be able to compensate the negative effects of the slowdown in the global economy.