ICI Türkiye Export Climate Index Posts 50.5 in September
- 08.10.2024
- News
The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index fell to 50.5 in September, signalling a moderate improvement in demand conditions in export markets. And it has reached nine months of the current strengthening trend. However, the index remained below the level of 51.3 in August, indicating the lowest value of the said improvement process.
The fastest growth among the 10 largest export markets of Turkish manufacturers was recorded in the United Arab Emirates (UAE) in September. Although output growth was strong in the United Kingdom and the United States, it decelerated compared to the previous month. However, economic activity in six of the 10 largest export markets of the Turkish manufacturing industry closed the third quarter of the year with contraction. These economies account for one fourth of the total export market.
The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index, which measures the operating conditions in the key export markets of the Turkish manufacturing sector, announced the results of the index for September 2024. In the index, the figures above the 50.0 no-change mark signals an improvement in the export climate, while the figures below signals a deterioration. In September, the index posted 50.5, signalling a moderate improvement in demand conditions in export markets on a monthly basis, and reaching nine months of the current strengthening trend. However, the index remained below the level of 51.3 in August, the previous month, indicating the lowest value of the said improvement process.
CONTRACTION IN SIX OF 10 LARGEST EXPORT MARKET
The fastest growth among the 10 largest export markets of Turkish manufacturers was recorded in the United Arab Emirates (UAE) in September. Growth in this country was significant, but at the slowest pace in three years. Although output growth was strong in the United Kingdom and the United States, it decelerated compared to the previous month. In Spain, the growth rate accelerated in September, with the strong increase in output reaching its highest level since May. However, economic activity in six of the 10 largest export markets of the Turkish manufacturing industry closed the third quarter of the year with contraction. These economies account for one fourth of the total export market. In Germany in particular, economic activity declined for the fourth consecutive month. The decline was strong and at the fastest pace of the last six months. Romania contracted more rapidly in September, while the contraction eased in the Netherlands.
THE FASTEST GROWING COUNTRY: SAUDI ARABIA
In France, Italy and Russia, economic activity started to decline again. The contractions in France and Italy followed a brief recovery in August. In Russia, economic activity fell for the first time since June and was the largest since December 2022. In September, the fastest growing country was Saudi Arabia, which also had the strongest performance in the last three months. While rapid increases in output were also observed in countries such as India, Singapore and Uganda, output continued to contract sharply in Myanmar, at the other end of the growth scale. Austria and Zambia saw sharp contractions.
Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “A complex outlook emerged in the main export markets of Turkish manufacturers in September. A moderate improvement trend in general demand conditions continues thanks to the growth realized in some countries, but 6 of the 10 largest export markets closed the third quarter of the year with contraction in output. Therefore, we are at a turning point in terms of the manufacturing sector, where we hope for a revival of global economic growth in the last quarter of the year.”
*You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index September 2024 report.