ICI Türkiye Export Climate Index Posted 52.3 in May

• 08.06.2023
• News

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, dropped to 52.3 in May from 53.1 in April. Despite this slight drop, it signalled a solid monthly improvement in export climate by remaining above the 50.0 no-change mark for fourth consecutive months.

One of the key markets helping to keep demand conditions improving was the US. Rates of expansion slowed in many countries in Europe. The other regions, the UAE, Saudi Arabia and Qatar all continued to post marked increases in business activity in May. Parts of Asia recorded strong growth in activity. Japan posted the fastest increase since October 2013, while in Mainland China the expansion was the sharpest in almost two-and-a-half years. 

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 May 2023., where any figure 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 Export Climate Index dipped to 52.3 in May from 53.1 in April. But the index still signalled a solid monthly improvement in export demand conditions for Turkish manufacturers. The export climate has now strengthened in each of the past four months, although the latest improvement was the least pronounced since February.

Improvement in US, Softer expansions in Europe

One of the key markets helping to keep demand conditions improving was the US, where business activity increased for the fourth month in a row and at the fastest pace in just over a year. While output in Europe also increased in May in general, rates of expansion slowed in a number of cases. France, Germany, Ireland, Italy, Spain and the UK all saw softer increases in business activity than in April amid weakness in manufacturing.

A lack of demand in manufacturing was highlighted by those European countries for which PMI data are only available for the manufacturing sector. Austria, the Czech Republic, Poland and the Netherlands all saw manufacturing production fall. Except for Greece where manufacturing output was boosted by demand from a buoyant tourism industry.

Significant improvement in UAE, Saudi Arabia and Qatar

The UAE, Saudi Arabia and Qatar continued to post marked increases in business activity in May, although of the three only Qatar saw growth accelerate. Elsewhere in the Middle East, Egypt and Lebanon posted softer reductions in activity than in April. Parts of Asia recorded strong growth in activity. Japan posted the fastest increase since October 2013, while in Mainland China the expansion was the sharpest in almost two-and-a-half years. India saw the rate of growth in activity remain unchanged from that seen in April, which was the steepest since mid-2010. Meanwhile, business activity increased in Russia for the fourth consecutive month in May. Although slowing from the previous survey period, the rate of expansion remained solid.

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

“While the export climate for Turkish manufacturers continued to improve, in many cases firms are relying on buoyant demand from services companies in international markets as manufacturing demand remains muted. Exporters will be hoping for more evenly distributed growth in the months ahead if current improvements are to be sustained.”