ICI Türkiye Export Climate Index posted 49.5 in November

• 08.12.2023
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Sector Export Climate Index remained below the 50.0 no-change mark at 49.5 in November 2023, indicating that the deterioration continued. The index was 48.5 in October. 

Declines in economic activity were particularly concentrated in the Eurozone. Contractions were recorded in Germany, Italy, France, Spain and the Netherlands. The US on the contrary, saw continued growth for the tenth consecutive month. The market that provided the greatest support to demand conditions was the United Arab Emirates, where the pace of expansion in non-oil activity reached a five-month high. Growth accelerated in Saudi Arabia and Qatar, while a contraction was observed in Egypt and Lebanon.

The Istanbul Chamber of Industry (ICI) Türkiye 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 November 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 Export Climate Index for the Turkish Manufacturing Sector rose to 49.5 in November 2023, up from 48.5 in October, but stayed below the critical mark of 50.0 for the fourth month running. The index increased compared to 48.5 in October, indicating that the deterioration in export demand conditions has eased and the contraction trend has reached its most moderate level.

DECLINES CONCENTRATED IN THE EUROZONE 

Declines in economic activity were particularly concentrated in the Eurozone. Contractions were recorded in Germany, Italy, France, Spain and the Netherlands. However, the overall contraction in the economies slowed down compared to October. Spain, as the only exception, completed its horizontal course in October with a decrease in November. There were signs of recovery in the United Kingdom, Türkiye’s third largest export market. Output increased slightly, ending the three-month downward trend. The US saw continued growth for the tenth consecutive month, maintaining its moderate pace from October.

ASIAN COUNTRIES IN THE EXPANSION ZONE 

The market that provided the greatest support to demand conditions was the United Arab Emirates, where the pace of expansion in non-oil activity reached a five-month high. As for the other Middle Eastern regions, growth accelerated in Saudi Arabia and Qatar, while a contraction was observed in Egypt and Lebanon. Some Asian countries, including India, China, Singapore, Indonesia and the Philippines stayed in the expansion zone in November. Apart from India and China, the BRIC countries Brazil and Russia also recorded economic growth in the fourth quarter. However, the increase in Russia was the lowest in the current 10-month expansion period.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “Although the demand climate for Turkish manufacturers continued to decline in November, there were signs hinting at a possible stabilization towards the year-end. The US maintained expansion, some Asian and Middle Eastern regions grew, and the UK was back to the growth zone. Even the Eurozone, despite being a hub of weak demand, displayed hints of slowing decline. Manufacturers anticipate a more noticeable recovery in the upcoming months based on these positive signals.”

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