ICI Türkiye Export Climate Index at 48.5 in September

• 08.11.2023
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Sector Export Climate Index was below the 50.0 no-change mark at 48.5 in October 2023, down from 49.0 in September. The most marked deterioration was recorded in export demand conditions in the year-to-date with Europe remaining the main source of weakness.

Seven of the ten largest markets for Turkish manufacturing sector are in Europe, and all but one of these posted a reduction in business activity during October, the exception being Spain where output was unchanged. Growth recorded in the US, Middle East and parts of Asia. Growth in India remained substantial, while Singapore, Indonesia and Philippines were also areas where there were notable rises in activity.

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, released the results of the index for October 2023. In the index, the figures above the 50.0 no-change mark signals an improvement in the export climate, while the figures below signals deterioration.

The Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index was below the 50.0 no-change mark for the third month running in October. Moreover, at 48.5, the index was down from 49.0 in September and pointed to the most marked deterioration in export demand conditions in the year-to-date.

CONTRACTION IN EUROPEAN MARKETS 

Turkish manufacturing exporters continued to face a challenging demand environment at the start of the final quarter of the year. As has been the case in recent months, the main source of weakness was Europe where a number of key export markets saw output moderate further. The US remained in growth territory, while parts of Asia and the Middle East were again key areas of expansion. Seven of the ten largest markets for Turkish manufacturing sector are in Europe, and all but one of these posted a reduction in business activity during October, the exception being Spain where output was unchanged. Activity in the UK decreased for the third month running, in Germany the decline was the fourth in a row, while Italy and France saw falls for the fifth successive survey periods. The second-largest export market for Turkish manufactured products – the US - remained in growth territory in October. Although the rate of expansion was marginal, it was the fastest in three months.

STRONG GROWTH IN ASIAN COUNTRIES 

Other sources of demand growth were often again found in the Middle East. The sharpest expansion overall was in the United Arab Emirates, where the increase was the fastest in four months. Another of the main export markets is Russia, where output continued to rise solidly in October. Activity has now increased in each of the past nine months. A number of the other areas of strength at the start of the final quarter were in Asia. Growth in India remained substantial, while Singapore, Indonesia and Philippines were also areas where there were notable rises in activity.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “Turkish manufacturing exporters were again impacted by the beleaguered European economy in October, with declines in activity among a number of key export markets meaning that the overall climate deteriorated. This was despite signs of resilience in the US, but also growth in parts of Asia and the Middle East. Manufacturers may therefore decide to put a focus on their search for new business on those parts of the world where economic health is more robust at present.”

*You can find attached the Istanbul Chamber of Industry Türkiye Export Climate Index October 2023 reports.