ICI Türkiye Export Climate Index Posted 51.6 in June

• 08.07.2024
• News

The Istanbul Chamber of Industry’s (İSO) Türkiye manufacturing export climate index remained above the 50 no-change mark since the start of 2024, signaled a sixth consecutive monthly improvement in demand conditions in Turkish export markets. The index fell from 52.8 in May to 51.6 in June, pointing to a softer strengthening of the export climate and one that was the least pronounced since March.

Demand conditions in the export markets of Turkish manufacturers continued to strengthen during June, thanks in part to strong growth in the UAE and a faster increase in business activity in the U.S., according to the survey. The US saw the highest growth rate of 26 months. The rate of improvement eased from the previous month amid signs of the economic recovery in Europe losing steam slightly, it added.

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index, which measures the business conditions in the key export markets of the Turkish manufacturing sector, released the results of the index for June 2024. 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’s (ICI) Türkiye manufacturing export climate index remained above the 50 no-change mark in June, marking the sixth consecutive monthly improvement in demand conditions in Turkish export markets. After reaching 52.8 in May, the index declined to 51.6 in June, marking the lowest level since March and signaling a slowdown in strengthening the export climate.

CONTRACTION IN FRANCE CONTINUES

Of the main export destinations for Turkish manufacturers, the strongest expansion in business activity in June was seen in the United Arab Emirates, according to the survey. In June, the UAE recorded the strongest economic expansion despite output growth reaching its lowest rate in about 18 months. The U.S. accounts for 6 percent of Turkish manufacturing exports and is the second-largest market. Another area of strength was the U.S., where the latest rise in business activity was the sharpest since April 2022, it said. The biggest single destination for Turkish manufactured goods is Germany, where business activity decreased fractionally at the end of the second quarter, following the first rise in a year in May. Output increases in Italy, Spain and the Netherlands slowed down, while France continued to experience contraction.

ECONOMIC ACTIVITY IN RUSSIA STARTED TO DECLINE 

Looking beyond the Eurozone, despite strong economic growth in the U.K., overall growth was at its lowest rate in the past year. Central Europe showed signs of weakness in June, with manufacturing production declining in Poland and Czechia and a moderate decline following two months of growth in Romania. Economic activity in Russia also resumed its decline. Qatar witnessed the fastest output growth among all countries surveyed in June, followed by Saudi Arabia and India.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “Despite a slight slowdown in growth in June, Turkish exporters generally maintained positive demand conditions. Particularly, the markets in the U.S. and UAE supported the overall outlook. The deceleration in improvement in June largely stemmed from a slowdown in economic recovery in Europe towards the end of the second quarter. Therefore, July PMI data will be closely monitored to determine whether this is merely a temporary slowdown or the beginning of a longer period of deceleration.”

*You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index June 2024 report.