ICI Türkiye Export Climate Index Posted 52.8 in May
- 10.06.2024
- News
The positive trend in the export climate of the Turkish manufacturing sector continued to accelerate in May, with the highest improvement in more than a year. The Istanbul Chamber of Industry Manufacturing Export Climate Index rose to 52.8 in May from 52.3 in April. The recovery accelerated for the fourth consecutive month and was at the highest rate since April 2023. Demand conditions strengthened in many export markets, while weakness was generally limited to a few Central European economies.
France was the only country with decreased economic activity among the 10 largest export markets in May, while output continued to expand in other important Eurozone economies such as Italy, Spain and the Netherlands. The economic activity of Germany, the largest foreign market in Türkiye's manufacturing industry exports, grew for the first time in a year in May. Among all the countries monitored within the scope of the index, the strongest increase in economic activity was measured in the United Arab Emirates (UAE).
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, announced the results of the index for May 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 Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index rose to 52.8 in May from 52.3 in April. The index points out that demand conditions in export markets have strengthened significantly on a monthly basis, while the recovery accelerated for the fourth consecutive month and was at the highest rate since April 2023.
ECONOMIC ACTIVITY IN THE US INCREASES FOR 16 MONTHS
The economic activity of Germany, the largest foreign market with a share of nearly 8 percent in Türkiye's manufacturing industry exports, grew for the first time in the last year in May. Output also continued its expansion trend in other important Eurozone economies such as Italy, Spain and the Netherlands. Among the 10 largest export markets, the only country where economic activity decreased was France. The downward trend in output in France reached 12 months. As for the European countries outside the Eurozone, economic activity increased in the United Kingdom, Russia and Romania, while signs of weakness continued in some Central European countries such as Poland and the Czech Republic. In the USA, which accounts for 6 percent of Turkish manufacturing industry, economic activity increased for 16 consecutive months and growth reached the highest speed since April 2022.
INDIA AMONG THE STRONGEST GROWING COUNTRIES
Among all the countries monitored within the scope of the index, the strongest increase in economic activity was measured in the United Arab Emirates (UAE). Some other Middle Eastern countries such as Saudi Arabia, Qatar and Kuwait also saw sharp increases in output. In contrast, economic activity continued to contract in Egypt and Lebanon. India continued to be one of the strongest growing countries in the global economy. India's output increased strongly again, though at the slowest pace since the beginning of the year. On the other hand, India's share in the export market of the Turkish manufacturing sector is below 1 percent.
Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “The re-expansion of output in Germany supports the perception that international market conditions are improving. This situation may provide additional opportunities for Turkish manufacturers to receive more new orders from abroad in the coming months. In addition, it seems that economic activity has increased significantly in some other important export markets of the sector.”
*You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index May 2024 report.