ICI Türkiye Export Climate Index Posted 50.0 in July

• 08.08.2022
• News

Measuring the operating conditions in the key export markets of the Turkish manufacturing sector, the Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index posted 50.0 in July, pointing to a standstill in export demand conditions. The index dropped from 51.8 in June, putting an end to the improvement in export climate that continued since February 2021.

The main source of increase in demand in the key export markets of Turkish manufacturers was the United Arab Emirates where the non-oil activities continue to rise sharply. 

In Europe, the growth continued though slower in the United Kingdom, Spain, France and the Netherlands. But the output in Germany, Italy, Poland and Greece dropped. In Germany, the biggest export market of Turkish manufacturing industry, the economic activity decreased for the first time since the beginning of the year, the highest decrease since the first wave of the Covid 19 pandemic. The private sector activity in the US returned to the contraction zone.

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 July 2022. 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 Industry Export Climate Index posted 50.0 in July, pointing to a standstill in export demand conditions. The index dropped from 51.8 in June, putting an end to the improvement in export climate that continued since February 2021. 

The main source of increase in demand in the key export markets of Turkish manufacturers was the United Arab Emirates (UAE) where the non-oil activities continue to rise sharply. This is the second highest rise seen in the last seven months. As for the other Middle Eastern countries, the economic activity slowed down in Egypt and Lebanon while Qatar and the Saudi Arabia continued to post strong growth.

A complex table in Europe

Europe, on the other hand, showed a complex table in terms of output in the beginning of 3Q. The growth continued though slower in the United Kingdom, Spain, France and the Netherlands. But the output in Germany, Italy, Poland and Greece dropped in July. In Germany, the biggest export market of Turkish manufacturing industry with 9 percent, the economic activity decreased for the first time since the beginning of the year, the highest decrease since the first wave of the Covid-19 pandemic. The private sector activity in the US returned to the contraction zone. The output decreased for the first time in more than two years, the highest drop since May 2020.

Increase in China for the second month in a row

Outside the Middle East, the fastest output rises were seen in Asia, with a significant growth in India, Singapore and Thailand. China also saw a rise in economic activity for the second month in a row after the pandemic restrictions were loosened. 

The sharpest drop in output was in Poland. The demand in Taiwan, Kenya and Czech Republic also slowed down. 

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

“The global economy continued to feel the negative impacts of the inflationary pressures on the demand in July and therefore some of the key export markers moved to contraction zone. Particularly the Europe and the USA were the cause of weak activity, making the Middle East, which has strong activity, the main source of new business opportunities for Turkish manufacturers in the present.”

You can find attached the Istanbul Chamber of Industry Türkiye Export Climate Index July 2022 reports.