ICI Türkiye Export Climate Index PMI Rises to 52.6 in March

• 10.04.2023
• News

The latest PMI® survey data from Istanbul Chamber of Industry (ICI), showing the manufacturing performance in the key export markets of the Turkish manufacturing sector, rose for the second month running to 52.6 in March. This data showed the signs of the most significant improvement in export climate since May 2022. Exporters reported signs of improving demand, amid fast recovery in key markets.

The output in Germany, one of the two countries with more than 15 percent share in Turkish manufacturing industry export, increased for two consecutive months, while the US recorded the highest rise of nine months in economic activity. Growth accelerated in France and Italy, while slowed down in the United Kingdom. The UAE and the Saudi Arabia continued to grow in non-petroleum economic activity in the Middle East. China continued to recover, too, while Russia recorded the highest growth of the last two and a half years.

The Istanbul Chamber of Industry (ICI) Turkey Manufacturing Export Climate Index, which measures the operation conditions in the key export markets of the Turkish manufacturing sector, announced the results of the index for March 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 a deterioration.

The headline PMI from Istanbul Chamber of Industry (ICI) rose to 52.6 in March from 51.7 in February, and signalled a solid improvement in the health of the sector. This data showed the signs of the most significant improvement in export climate since May 2022. Exporters reported signs of improving demand, amid fast recovery in key markets.

High increase in two big economies: Germany and the US

The output in Germany, one of the two countries with more than 15 percent share in Turkish manufacturing industry export, increased for two consecutive months, and reached the highest of 10 months. And the other economy, the US recorded the highest rise of nine months in economic activity. Other European countries, including France, Italy, Spain and Greece, also saw accelerated growth in March. However, the economic activity slowed down in the United Kingdom and Ireland, and the manufacturing sector output dropped in the Netherlands, Austria, Poland and Czech Republic.

UAE and S. Arabia continues to grow, China continues to recover

The United Arab Emirates and the Saudi Arabia continued to post strong increases in non-petroleum economic activity, while Qatar showed a faster growth at the end of the first quarter. Continued decrease in output in Egypt and Lebanon were the relatively negative developments in the Middle East. However, those drops were the most modest of last five and seven months, respectively. China’s recovery in economy after the easing of Covid-related restrictions also continued in March and the output increased at its highest rate since June last year. Similarly, Russia recorded the highest growth of the last two and a half years. March was positive for BRIC countries. India again recorded a strong expansion in economic activity and Brazil returned to growth zone for the first time in last five months. 

The cash problem in Nigeria continued to create a serious problem on economic activity. The drop in output in March was by far the highest among the monitored countries as in February. 

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said:

“Upon signals of acceleration in the recovery of the global demand, Turkish manufacturers saw the most significant improvement of approximately one year in export climate. Despite continued weakness in the Europe’s manufacturing sector, output increased in eight of ten biggest export markets in March. These developments are signalling a second quarter with a solid foundation on which firms can build in the coming months.

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