ICI Türkiye Export Climate Index Posts 50.6 in January

• 08.02.2024
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index rose to 50.6 in January from 49.7 in December, signalling moderate improvement in demand conditions. There were signs of recovery persisted in many of Türkiye’s key export markets, while weaknesses continued in some Continental European countries. And growth remained robust in the Middle East. 

The renewed strengthening of the export climate in part reflected expanding output in three of the five largest export markets for Turkish manufacturers as Italy joined the U.S. and the U.K. in growth territory. The strongest growth among all monitored economies was observed 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, released the results of the index for January 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 Manufacturing Export Climate Index rose to 50.6 in January from 49.7 in December. The demand climate for Turkish manufacturing exporters strengthened for the first time since July 2023 in January. The index posted above the 50 no-change mark for the first time in six months in January.

INCREASE IN 3 OUT OF 5 LARGEST EXPORT MARKETS

The renewed strengthening of the export climate in part reflected expanding output in three of the five largest export markets for Turkish manufacturers as Italy joined the U.S. and the U.K. in growth territory. Notably, the U.S. and the U.K. posted the fastest increases in activity in six and eight months, respectively.

THE FASTEST GROWING MARKET: UAE

The single largest export market for Turkish manufactured goods – Germany - remained in contraction in January, however, seeing output decrease for the seventh month running and at a faster pace than in December last year. Similarly France also saw contraction in output. The share of Germany and France in Turkish manufacturing industry exports stands at approximately 13%, the survey said. Mixed trends were observed in other Eurozone countries, with output increasing in Spain and Greece while declining in the Netherlands and Austria. 

The strongest growth among all monitored economies was observed in the United Arab Emirates (UAE), followed by India with a small difference. The Middle East economies covered by the PMI data represent approximately 7% of the export market. Looking at the Middle East countries, output remained strong in Saudi Arabia, increased moderately in Qatar and declined in Egypt and Lebanon, the survey showed. 

In Russia, economic activity continued to grow in January. The expansion was strong in terms of rate and slightly below that of December. Meanwhile, Poland, the Czech Republic, and Kazakhstan continued to experience a contraction in their economies.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: "Apart from two significant economies such as Germany and France that continued to be under pressure in the first month of the year, there are clear signs that demand conditions are strengthening in Türkiye’s main export markets. Signs of improvement observed in many markets provide hope that Turkish manufacturers may further increase their sales to foreign markets in the coming months,".

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