ICI Türkiye Export Climate Index posted 52.3 in April

• 08.05.2024
• News

The Istanbul Chamber of Industry Manufacturing Export Climate Index rose to 52.3 in April from 51.6 in March. The strengthening trend in demand conditions in export markets continued at the beginning of the second quarter. The improvement in the export climate was significant and at the highest rate since May 2023. With the significant improvement in April, the export demand conditions continued to get stronger for the fourth consecutive month.

Output increased in most of the major export markets of Turkish manufacturers in April, while the economic contraction in Germany and France was nearing an end. Among the top 10 export markets, which constitute 46 percent of the total export volume of Turkish manufacturers, eight economies, led by the United Arab Emirates (UAE), recorded expansion in April. Strong increases were seen in the output of the United Kingdom and Spain, while economic activity continued its upward trend in the US, Russia and Italy. 

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 April 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 a deterioration. The index increased for the sixth consecutive month in April, reaching 52.3, its highest value in about a year. With the significant improvement in April, the export demand conditions continued to get stronger for the fourth consecutive month.

UAE ACHIEVES HIGHEST GROWTH RATE

Among the top 10 export markets, which constitute 46 percent of the total export volume of Turkish manufacturers, eight economies, led by the United Arab Emirates (UAE), recorded expansion in April. The UAE also achieved the highest growth rate among all economies covered in the report, followed narrowly by Saudi Arabia and India. Strong increases were recorded in the output of the United Kingdom and Spain in April, and growth accelerated in both countries, reaching the highest pace in the last year. The Netherlands recorded the strongest expansion in the manufacturing industry activity of the last two years, and Romania recorded the first increase in the 10-month survey history. In the US, Russia and Italy, economic activity continued its upward trend in April, but growth slowed down compared to March.

THE SHARPEST CONTRACTION OBSERVED IN THE CZECH REPUBLIC 

Germany and France were the two countries that could not record an increase in output among Turkey's 10 largest export markets at the beginning of the second quarter, which account for approximately 13 percent of exports in total. However, the economic contraction in both countries came to a near halt in April. The decreases in output were recorded at the most moderate levels of the last 10 and 11 months in the two countries, respectively. On the other hand, the improvement in the general outlook was not applicable for all economies monitored under the scope of the survey, and output continued its significant downward trend in some regions.

 The sharpest contraction in April was seen in the Czech Republic, followed closely by Egypt and Austria.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “The improvement trend in demand conditions in the major export markets of Turkish manufacturers became more widespread in April, with Germany and France showing signs of getting out of the contraction trend. This was a positive signal for companies to receive new export orders in the coming months.”

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