ICI Türkiye Export Climate Index posts 50.8 in July

• 08.08.2024
• News

The Istanbul Chamber of Industry (ICI) Manufacturing Sector Export Climate Index posted 50.8 in July, above the 50-threshold value. The Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index signalled a seventh consecutive monthly strengthening of the export climate. The index was down from 51.6 in June and pointed to the least marked improvement in export demand conditions since January. 

Export demand conditions improve modestly, while the US remained a key source of improving demand during July. Economic growth in the UAE was again high in July, although at the slowest pace since September 2021. In Europe, there were mixed trends in business performance at the start of the third quarter. Russia posted a renewed expansion in output during July, following a first reduction in 17 months in June.

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index, which measures the operating conditions in the key export markets of the Turkish manufacturing sector, released the results of the survey for July 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 posted 50.8 in July to signal a seventh consecutive monthly strengthening of the export climate. That said, the index was down from 51.6 in June and pointed to the least marked improvement in export demand conditions since January.

OUTPUT UP IN SAUDI ARABIA AND KUWAIT 

The US remained a key source of improving demand during July. Output rose solidly, and at a pace that was only slightly slower than the 26-month high seen in June. Economic growth in the UAE was again high in July, although at its slowest pace since September 2021. Elsewhere in the Middle East, Saudi Arabia and Kuwait saw output increase, but reductions were recorded in Egypt and Lebanon. Turning to Europe, there were mixed trends in business performance at the start of the third quarter. The third-largest export market for Turkish manufacturers - the UK - signalled a solid increase in output that was faster than that seen in the previous month.

NEGATIVE PICTURE IN THE EUROZONE 

In the eurozone, the picture was less positive. Germany, which accounts for around 8% of Turkish manufacturing exports, saw business activity decrease for the second month running, and at a faster pace. Output also fell in France, Italy and the Netherlands. More positive was a solid increase in activity in Spain Manufacturers in central Europe continued to struggle, with the Czech Republic, Poland and Romania all seeing production decline in July. Russia posted a renewed expansion in output during July,

following a first reduction in 17 months in June. Of the countries covered by the report, India posted the fastest expansion in output during July as growth remained substantial. At the other end of the scale, business activity in Kenya was heavily disrupted by protests and political instability, leading to a rapid decline. These developments led to a sharp contraction in this country.

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 continued to improve overall in July, this masked differing trends in some of the key export markets for Turkish manufacturers. Firms could be looking to focus on sales to the US, UK and UAE for now as demand conditions there are improving solidly. On the other hand, the eurozone is on less of a stable footing, with a number of economies there having returned to contraction territory in the past couple of months.”

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