ICI Türkiye Export Climate Index rises to 51.1 in October

• 08.11.2024
• News

The Istanbul Chamber of Industry (ICI) Türkiye Manufacturing Export Climate Index ticked up to 51.1, signalling a modest improvement in the export climate and one that was more pronounced than in the previous survey period. Export demand conditions have now strengthened in ten consecutive survey periods.

The business activity in Germany decreased for the fifth month running in October, albeit modestly. France also saw reduction in activity, while the UK saw sustained output growth. The business activity in the US increased solidly again in October. Expansion continued in the Middle East, with the strongest expansion was seen in the UAE.

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 October 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 ticked up to 51.1 in October from 50.5 in September, signalling a modest improvement in the export climate and one that was more pronounced than in the previous survey period. Export demand conditions have now strengthened in ten consecutive survey periods.

Reductions in the two largest export markets

Although the overall export climate improved, business activity in the largest single export market, Germany, decreased for the fifth month running in October, albeit modestly. France was the other key destination to see a reduction in activity. Combined, these two economies account for close to 13% of Turkish manufacturing exports. Elsewhere in Europe the picture was generally more positive. The UK saw sustained output growth, while the rate of expansion in Spain remained marked. A renewed increase in activity was seen in Italy, following a slight decrease in September. The US, which accounts for 6% of Turkish manufacturing exports, saw business activity increase solidly again in October, extending the current sequence of growth to 21 months. Also in North America, Canada posted a first rise in output since May.

Expansion continues in the Middle East

The strongest expansion in business activity was seen in the UAE, where growth quickened to a six-month high and was rapid. Increases were also registered in Saudi Arabia, Qatar and Kuwait, but Egypt and Lebanon remained in contraction, the latter posting the fastest reduction in output in 44 months. Of the other main export destinations, Russia recorded a modest increase in activity, but the Netherlands and Romania saw manufacturing production decline. Meanwhile, the sharpest reduction in output of all the economies covered by the report was seen in Austria, where the rate of contraction was the steepest in 2024 so far.

Commenting on the Istanbul Chamber of Industry Türkiye Manufacturing Export Climate Index, Andrew Harker, Economics Director, S&P Global Market Intelligence, said: “Despite the notable underperformance of Germany, the largest single export market for Turkish manufacturers, the overall export climate continued to improve, with a number of other key destinations recording growth of business activity and thus providing options for firms to secure international sales. The Middle East remained a key growth engine, while the US again saw output increase solidly despite a level of business uncertainty in the lead up to the Presidential Election.”

You can find attached the entire Istanbul Chamber of Industry Türkiye Export Climate Index October 2024 reports.