ICI Türkiye Export Climate Index Posted 50.3 in July

• 08.08.2023
• News

The Istanbul Chamber of Industry Türkiye Manufacturing Sector Export Climate Index posted 50.3 in July, decreasing for the third consecutive month. This figure suggests that the strengthening of international demand conditions was very slight. The improvement was at its most limited level during the past six months of continued positive momentum.

Germany saw the first drop in output in six months. Economic activity weakened in many European countries like Italy, France and the Netherlands. The U.S.’s economic activity rose for six consecutive months. The most positive demand developments were again in the Middle East, with the most significant being in Saudi Arabia. India continued its strong performance. Russia and China also continued to grow, though with slower pace. And in Brazil, output contracted for the first time in five months.

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 July 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 Istanbul Chamber of Industry Türkiye Manufacturing Sector Export Climate Index posted 50.3 in July, down from 51.1 in June, decreasing for the third consecutive month. This figure suggests that the strengthening of international demand conditions was very slight. The improvement observed was at its most limited level during the past six months of continued positive momentum.

Output fell in Germany, slower pace in the US

Output in Germany, which accounts for some 9% of Turkish manufacturing exports, fell for the first time in 6 months in July, after a stable June. Economic activity weakened in many European countries like Italy, France, the Netherlands, Poland and Czech Republic. The sharpest contraction in output in the monitored economies was realized in Austria. The UK, Spain and Greece continued to remain in the expansion zone, while only Greece accelerated its growth compared to June. The economic activity in the US rose for six months in a row, though with the slowest pace since February.

Most positive demand developments again in the Middle East

In the early third quarter, the most positive demand developments globally were again observed in the Middle East. Economic activity experienced rapid increases in the United Arab Emirates, Qatar, and Saudi Arabia. Among all economies covered in the survey, the most significant growth was measured in Saudi Arabia. Looking at other countries, Lebanon saw output increase for the second consecutive month, while the decline in output slowed down in Egypt. India continued its strong performance with faster growth in July compared to the previous month, while growth continued, albeit at a slower pace, in Russia and China. In Brazil, output contracted for the first time in five months.

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

“The deteriorating economic outlook, particularly in the manufacturing sector in Europe, suggests that the improving trend for Turkish manufacturing industry exporters may have come to an end. Firms are hopeful that the vibrant demand conditions in the Middle East will continue to drive growth for now. However, in order to prevent a period of worsening external demand conditions, global growth needs to become more widespread.” 

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